Aadhar Housing Finance IPO listing: Stock gets slow start, listed on NSE at ₹315, same as IPO price
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Aadhar Housing Finance IPO listing: Stock gets slow start, listed on NSE at ₹315, same as IPO price


Aadhar Housing Finance IPO Listing: Aadhar Housing Finance made a slow start in the stock market today. stock is listed It is priced at Rs 315 on NSE, which is the same as its issue price. Meanwhile, the stock got listed on BSE 314.30, a discount of 0.22 percent.

The Rs 3,000 crore initial public offering (IPO) of Aadhar Housing Finance was open for subscription between May 8, 2024 – May 10, 2024, with a price band of 300-315. Aadhaar Housing Finance IPO came on Tuesday, May 7 Rs 898 crore from anchor investors.

Aadhar Housing Finance IPO allocated 35 per cent of the issue size to retail investors, 15 per cent to non-institutional investors (NIIs) and 50 per cent to qualified institutional buyers. Company employees were entitled to exemption 23 per share.

Aadhar Housing received strong subscription across all categories in 3 days of bidding. Overall it was subscribed 26.76 times. Investors bid for 178.65 crore shares, compared to 6.67 crore shares on offer. The QIB tranche was subscribed the highest at 76.42 times, followed by the NII tranche at 17.33 times. Meanwhile, the employee portion was subscribed 6.88 times and the retail portion was subscribed 2.58 times.

The issue was a combination of fresh issues totaling 3.17 crore shares Rs 1,000 crore and proposal for sale of a total of 6.35 crore shares Rs 2,000 crore was raised by promoter BCP Topco VII Pte Ltd, an affiliate of the Blackstone Group. BCP Topco held 98.7 per cent of the pre-offer issued, subscribed and paid-up equity share capital.

The firm has proposed to use the net proceeds from the IPO to fund more lending as well as to meet future capital requirements for general corporate operations.

SBI Capital Markets Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory & Securities (India) Private Limited, and Citigroup Global Markets India Private Limited are the lead book running managers. Kfin Technologies Limited is acting as the registrar to the issue.

Aadhar Housing Finance Limited is a housing finance firm that provides services to the low-income sector. The sales offices of the deep impact branches are targeted at customers in Tier 4 and Tier 5 cities of India. As of September 30, 2023, the firm had enlisted 12,221 Aadhaar friends who earned referral fees for originating loans for consumers. The organization offers a wide range of mortgage financing options for the purchase and development of residential and commercial property as well as home renovations and expansions.

Most experts advised subscribing to the issue as they believed the IPO was priced fairly compared to its competitors.

“Taking into account the book value of On a post-issue basis the Rs 52,492 million company is going to list at a P/B of 2.56x with a market cap of Rs. 1,34,348 Million, while its peers Aptus Value Housing Finance India Ltd, Aavas Financiers Ltd, Home First Finance Company India Ltd, India Shelter Finance Corporation Ltd are trading at P/B of 4.65x, 3.36x, 4.05x, 4.59 . X. We provide a “Subscribe” rating to this IPO as the company has an experienced business model with strong resilience through business cycles and robust processes for underwriting, collections and monitoring asset quality. Moreover, it is available at a reasonable valuation in comparison. Friends,” brokerage house Marwari Shares and Finance said.

Other brokerages including Aditya Birla Ltd, Ashika Research, Canara Bank Securities, Nirmal Bang and SMIFS had also given 'subscribe' tag to the book build issue.

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Published: May 15, 2024, 10:00 am IST


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