Aadhar Housing Finance IPO price band set at Rs 300-315 per share

Aadhar Housing Finance, backed by Blackstone, is preparing for its much-anticipated going public (IPO), set to open for membership on May 8. With an objective to raise Rs 3,000 crore, the business has actually developed a cost band of Rs 300-315 per share.

Financiers will have the chance to sign up for the IPO till May 10, with the anchor book opening a day previously on May 7th. Following the closure of memberships, the basis of allocation is slated for finalisation on May 13th, while refunds are anticipated to be started on May 14th. The business is poised to make its launching on stock market on May 15th.

Having actually at first submitted draft documents with the Securities and Exchange Board of India (Sebi) in January 2021, Aadhar Housing got regulative approval in May 2022 to raise over Rs 7,000 crore. The strategies were put on hold at that time.

The IPO includes a fresh concern of shares totaling up to Rs 1,000 crore, together with an offer-for-sale (OFS) of shares worth Rs 2,000 crore by promoter BCP Topco. At the upper end of the rate band, the business’s appraisal exceeds Rs 13,000 crore.

The net earnings from the offering are allocated for conference future capital requirements connected with onward providing and basic business functions.

Aadhar Housing Finance concentrates on offering real estate financing services customized for the low-income sector, with loan sizes usually listed below Rs 15 lakh. It boasts the greatest properties under management (AUM) and net worth amongst its peers, based upon analysis covering the 6 months ending September 2023.

Using a varied portfolio of mortgage-related loan items, consisting of home purchase and building and construction loans, home enhancement loans, and loans for industrial home building and construction and acquisition, the business runs through a network of 471 branches, consisting of 91 sales workplaces.

According to Crisil’s analysis of a peer set, Aadhar Housing Finance held the greatest variety of live accounts in FY2023, primarily serving financially weaker and low-to-middle-income consumers.

Since September 30, 2022, and September 30, 2023, the typical ticket size of loans stood at Rs 9 lakh, with typical loan-to-value ratios of 57.6% and 58.1%, respectively.

ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and SBI Capital are functioning as the book-running lead supervisors for the IPO.