According to ET, the IPO includes a mix of a fresh issue of shares valued at Rs 1,000 crore and an offer-for-sale (OFS) of shares worth Rs 2,000 crore by the promoter, BCP Topco.The company plans to use the net proceeds to meet future capital needs for lending and other general corporate purposes.
Aadhar Housing Finance IPO Recommendation
Analysts recommend investors subscribe to the IPO, citing Aadhar Housing’s consistent financial growth.
Swastika Investmart notes that while the company’s valuation, with a 22.8 times price-to-earnings ratio and a 3.36 times price-to-book value, seems reasonable, its high reliance on borrowing requires caution. They suggest this IPO is best for high-risk investors seeking long-term opportunities in the affordable housing sector.
ALSO READ | Fall from nearly $20 billion! Paytm market cap near $2.5 billion as its shares continue to slide
Aadhar Housing Finance IPO price band
The company has set a price range of Rs 300-315 per share for its IPO, with investors required to bid for at least 47 shares in one lot. If priced at the upper end, the company’s total valuation would be over Rs 13,000 crore.
About Aadhar Housing Finance
The company is a housing finance corporation (HFC) that specialises in loans for the low-income housing sector, with an average loan amount of less than Rs 15 lakh. It had the largest assets under management (AUM) and the highest net worth among its peers in the six months ending September 2023.
The lender offers various mortgage-related loan products, including loans for buying and building residential properties, home improvement and extension loans, and loans for constructing or buying commercial properties. The company has a broad network of 471 branches and 91 sales offices.
Financial overview
Crisil’s analysis shows that Aadhar Housing Finance had the most active accounts among its peers in FY2023. The company primarily serves economically weaker customers and those with low-to-middle incomes.
The average loan size was Rs 9 lakh, with an average loan-to-value ratio of 57.6% in September 2022 and 58.1% in September 2023.
Lead managers
The book-running lead managers for the IPO are ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and SBI Capital.
!(function(f, b, e, v, n, t, s) {
function loadFBEvents(isFBCampaignActive) {
if (!isFBCampaignActive) {
return;
}
(function(f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function() {
n.callMethod ? n.callMethod(…arguments) : n.queue.push(arguments);
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.defer = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
})(f, b, e, ‘https://connect.facebook.net/en_US/fbevents.js’, n, t, s);
fbq(‘init’, ‘593671331875494’);
fbq(‘track’, ‘PageView’);
};
function loadGtagEvents(isGoogleCampaignActive) {
if (!isGoogleCampaignActive) {
return;
}
var id = document.getElementById(‘toi-plus-google-campaign’);
if (id) {
return;
}
(function(f, b, e, v, n, t, s) {
t = b.createElement(e);
t.async = !0;
t.defer = !0;
t.src = v;
t.id = ‘toi-plus-google-campaign’;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
})(f, b, e, ‘https://www.googletagmanager.com/gtag/js?id=AW-877820074’, n, t, s);
};
function loadSurvicateJs(allowedSurvicateSections = []){
const section = window.location.pathname.split(‘/’)[1]
const isHomePageAllowed = window.location.pathname === ‘/’ && allowedSurvicateSections.includes(‘homepage’)
if(allowedSurvicateSections.includes(section) || isHomePageAllowed){
(function(w) {
var s = document.createElement(‘script’);
s.src=”https://survey.survicate.com/workspaces/0be6ae9845d14a7c8ff08a7a00bd9b21/web_surveys.js”;
s.async = true;
var e = document.getElementsByTagName(‘script’)[0];
e.parentNode.insertBefore(s, e);
})(window);
}
}
window.TimesApps = window.TimesApps || {};
var TimesApps = window.TimesApps;
TimesApps.toiPlusEvents = function(config) {
var isConfigAvailable = “toiplus_site_settings” in f && “isFBCampaignActive” in f.toiplus_site_settings && “isGoogleCampaignActive” in f.toiplus_site_settings;
var isPrimeUser = window.isPrime;
if (isConfigAvailable && !isPrimeUser) {
loadGtagEvents(f.toiplus_site_settings.isGoogleCampaignActive);
loadFBEvents(f.toiplus_site_settings.isFBCampaignActive);
loadSurvicateJs(f.toiplus_site_settings.allowedSurvicateSections);
} else {
var JarvisUrl=”https://vsp1jarvispvt.indiatimes.com/v1/feeds/toi_plus/site_settings/643526e21443833f0c454615?db_env=published”;
window.getFromClient(JarvisUrl, function(config){
if (config) {
loadGtagEvents(config?.isGoogleCampaignActive);
loadFBEvents(config?.isFBCampaignActive);
loadSurvicateJs(config?.allowedSurvicateSections);
}
})
}
};
})(
window,
document,
‘script’,
);
More News
Exports may grow 10-15% to $900bn in FY25 – Times of India
Large PSUs spend over Rs 50,200cr in capex in April – Times of India
L&T may exit Hyd metro as free bus rides hurt biz – Times of India