Aadhar Housing Finance Rs 3000 Cr IPO Closes With 26 Times Subscription
The Rs 3,000 book-built issue consists of fresh issuance worth Rs 1,000 crore and OFS worth Rs 2,000 crore with a price band of Rs 300 to 315
Aadhar Housing Finance closed its initial public offering (IPO) for public bids on 10 May which attempted to raise Rs 3,000 crore with its combination of fresh issue and offer-for-sale component (OFS).
The allotment for the issue is scheduled on 13 March, followed by listing on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 15 May.
Notably, the retail investors showed subdued response to the issue as it was filled only 2.57 times. However, the final subscription stood at 26.7 times, as per data by chittorgarh.
The Rs 3,000 book-built issue consisted of fresh issuance worth Rs 1,000 crore and OFS worth Rs 2,000 crore with a price band of Rs 300 to 315.
Analyst Note
“AHF is focused on providing finance to the low-income housing segment, where ticket size is generally less than 15 lakh. Having the highest assets under management (AUM) amongst peers, the company presents a very good opportunity, given the push that the government is giving to housing for all sprawl through its Pradhan Mantri Awas Yojana,” said Anchal Kansal, Research Analyst, Green Portfolio.
Catering to the home loan segment, 100 per cent of its loan book is secured. Two years ago, its peers Home First Finance and Aptus Housing priced their IPO at a 50 per cent premium, hence, the upside offered by Aadhar Housing IPO seems to be much more attractive, added Kansal.
Kotak Mahindra Capital, Citigroup Global Markets, SBI Capital Markets and Nomura Financial Advisory and Securities are the book running lead managers, while Kfin Technologies is the registrar to the issue.
The promoters cumulatively own over 98.72 per cent stake in the firm which will be further diluted post-IPO.
IPO Objectives
The company proposed to utilise net proceeds of Rs 1,000 crore to meet the future capital requirements towards onward lending along with general corporate purposes.
Firm’s Financials
The firm registered revenue of Rs 2,043 crore in FY23, compared to Rs 1,728 crore in FY22. The firm’s profit after tax (PAT) increased to Rs 545 crore in FY23 compared to Rs 446 crore in FY22. Overall, revenue and PAT increased by 18.22 per cent and 22.22 per cent respectively.
