Aadhar Housing Finance IPO; Housing Finance company IPO to begin from May 08; Key Details here

Aadhar Housing Finance is into Financial Services Housing Finance is into Financial Services-Housing Finance and is looking raise funds through Fresh Issue and Offer for Sale

Aadhar Housing FinanceIPO: to raise around Rs 3,000 crores through public issue IPO

Aadhar Housing Finance IPO is a public offering of shares by BCP Topco VII Pte. Ltd. (Blackstone Group). The IPO will open on May 08 and will close on May 10. The price band is ₹300 to ₹315 per share and the lot size is 47 shares. The issue size is ₹3,000. crore. The shares are expected to be listed on NSE, BSE on May 15 (^). Some additional information that you may find useful are: Aadhaar Housing Finance focuses on providing housing loans to low-income earners. As of September 2023, they boast a wide network of 471 branches and an average loan size of around ₹1 million. Their net profit for the first nine months of FY24 showed a healthy increase of 35.6% compared to the same period last year. With a Net Interest Margin (NIM) of 9%, their financial performance appears promising.: (**) - based on higher price band (^) indicative date

Also READ: Mumbai based Housing Finance Company Aadhar Housing Finance files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of Aadhar Housing Finance IPO:

Promoters of the company are BCP Topco VII Pte. Ltd. (Blackstone Group) Currently promoters hold 98.72% stake in the company. While post-equity promoters stake will be 76.48%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 3,000 to 3,000 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) To meet future capital requirements towards onward lending amounting to Rs 750 Cr and 2) General Corporate Purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 07-May-24.
• Price band for the IPO has been fixed at Rs 300 to 315 per share and bid lot are in multiple of 47 shares. The implied market cap post-issue at Rs 12,843 to 13,435 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on May 13 and share are expected to be listed on NSE, BSE on May 15.
• Company has direct peer competition in India'a Housing Finance sector. Listed peers includes Aptus Value Housing Finance, Aavas Financiers, Home First Finance Company India and India Shelter Finance Corporation amongst others.
• ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities, SBI Capital Markets has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.

About Aadhar Housing Finance Limited

Aadhar Housing Finance Limited

Aadhaar Housing Finance is a housing finance company established in 2010 that specifically targets the needs of lower income individuals in India. They offer a variety of home loan products, including those for purchase, construction, renovation, and extension of residential properties. Their aim is to make homeownership attainable for those who might otherwise struggle to qualify for traditional loans.

Aadhaar Housing Finance focuses on providing housing loans to low-income earners. As of September 2023, they boast a wide network of 471 branches and an average loan size of around ₹1 million. Their net profit for the first nine months of FY24 showed a healthy increase of 35.6% compared to the same period last year. With a Net Interest Margin (NIM) of 9%, their financial performance appears promising.

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About Industry

The overall size of the housing finance market focusing on low income housing loans in India was around ₹ 4.4 trillion as of December 2023, constituting for around 14% of the overall housing finance market, as per CIBIL data. CRISIL MI&A expects the industry to pick up steam gradually and the loans outstanding in housing finance focused on low income housing segment to touch ₹ 5.4-5.7 trillion by March 2026, translating into an 8-10% CAGR between Fiscals 2023 and 2026.

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.