Aadhar Housing Finance IPO - 7 Things to Know
Aadhar Housing Finance Ltd has filed the DRHP for its proposed IPO more than 9 months back and the approval from SEBI is still awaited.
7 Important Things to Know About Aadhar Housing Finance IPO
1) Aadhar Housing Finance Ltd has filed for a Rs.7,300 crore IPO with SEBI which comprises of a fresh issue of Rs.1,500 crore and an offer for sale of Rs.5,800 crore. BCP Topco, one of the early investors in Aadhar Housing, will be taking partial exit as part of the IPO. The fresh issue component will be used to boost its Tier-1 capital.
2) Aadhar Housing Finance Ltd was established in the year 1990 to predominantly provide loans to the affordable housing segment. As of FY20, the company had the largest affordable housing customer base and also the highest disbursal rate.
3) Its product portfolio includes loans for the purchase and construction of residential property, home improvement loans, home extension loans as well as loans for the purchase and construction of commercial property too.
4) Aadhar Housing Finance Ltd has a strong geographical and lateral spread of business across the length and breadth of India. It has a total of 292 branches spread across 20 states and union territories of India. It has a deep customer franchise built in urban, semi-urban and also rural areas.
5) The Aadhar Housing Finance IPO will have a face value of Rs.10 and it will be listed on the BSE and the NSE to ensure wide market acceptance and trading. The price band of the issue and the issue dates will be decided only after the SEBI approval is accorded to the DRHP, which is normally given as observations to the proposed issuing company.
6) The company, Aadhar Housing Finance was originally owned by the Dewan Housing group, which eventually went bankrupt. In 2019, Aadhar Housing was acquired by BCP Topco, a unit of Blackstone. At that time it had bought the 98.72% stake in Aadhar Housing for a consideration of Rs.2,200 crore.
7) For FY21, Aadhar Housing Finance Ltd reported revenues of Rs.1,550 crore and net profits of Rs.340 crore, implying net margins of 21.94%. Net NPAs of the lender stand at 0.81%, which indicates bad assets largely under control.
The IPO of Aadhar Housing Finance Ltd will be lead managed by ICICI Securities, Citigroup Global Markets, Nomura Financial Advisory and SBI Capital Markets; acting as the book running lead managers (BRLMs) to the issue.
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