Aadhar Housing Finance Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹315
Per ShareLot Size
47 Shares
Minimum Investment
₹14,805
Issue Size
₹3,000 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Aadhar Housing Finance Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
98.72%
Issue Type
Book Building
ISIN
INE883F01010
About the Company
According to CRISIL, Aadhar Housing Finance Limited is a housing finance company focused on the low-income housing segment (ticket size less than Rs.1.5 million) in India and we had the highest asset under management and net worth among our analyzed peers in FY2021, FY2022, FY2023 and nine months ended December 31, 2022 and December 31, 2023. We offer a range of mortgage-related loan products. The Company has an extensive network of 487 branches including 109 sales offices, as of December 31, 2023. its branches, sales offices, regional and corporate offices, including Registered Office and Corporate Office, are located on leased or licensed premises.
Industry Overview
The overall size of the housing finance market focusing on low income housing loans in India was around Rs. 4.4 trillion as of December 2023, constituting for around 14% of the overall housing finance market, as per CIBIL data. CRISIL MI&A expects the industry to pick up steam gradually and the loans outstanding in housing finance focused on low income housing segment to touch Rs. 5.4-5.7 trillion by March 2026, translating into an 8-10% CAGR between Fiscals 2023 and 2026.
Company History
Aadhar Housing Finance Limited was originally incorporated as `Vysya Bank Housing Finance Limited' at Bengaluru, Karnataka as a public company under the Companies Act, 1956, pursuant to a certificate of incorporation dated November 26, 1990, issued by the Registrar of Companies, Karnataka at Bangalore ("RoC") and commenced operations pursuant to a certificate for commencement of business dated November 27, 1990, issued by the RoC. Subsequently, the name of the Company was changed to `DHFL Vysya Housing Finance Limited' and a fresh certificate of incorporation dated October 15, 2003, was issued by the RoC. Separately, an entity named `Aadhar Housing Finance Private Limited' ("Pre-merger AHFPL") was incorporated as a private limited company under the Companies Act, 1956, at Mumbai, Maharashtra pursuant to a certificate of incorporation dated May 3, 2010, issued by the Registrar of Companies, Maharashtra at Mumbai, which commenced its operations in February 2011. Pre-merger AHFPL was later converted into a public company and consequently, its name was changed to `Aadhar Housing Finance Limited', and a fresh certificate of incorporation dated September 3, 2013 was issued by the Registrar of Companies, Maharashtra at Mumbai. Pre-merger AHFPL was later merged into the Company pursuant to a scheme of amalgamation approved by the National Company Law Tribunal, Bengaluru Bench at Bengaluru, vide its order dated October 27, 2017 ("Scheme of Amalgamation"). Pursuant to the Scheme of Amalgamation, the name of the Company was changed to `Aadhar Housing Finance Limited' and a fresh certificate of incorporation dated December 4, 2017, was issued by the RoC.
Products & Services
- Aadhar Housing Finance Limited is a housing finance company focused on the low-income housing segment in India.
Growth Strategy
- Expand its Distribution Network to Achieve Deeper Penetration in key states.
- Continue to focus on its target customers and grow its customer base.
- Continue to invest in and roll out digital and technology enabled solutions across its business to improve customer experience and improve cost efficiency.
- Optimize its borrowing costs and reduce operating expenses further.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 95,255,598# equity shares of face value of Rs. 10 each ("Equity Shares") of Aadhar Housing Finance Limited* ("Company") for cash at a price of Rs. 315 per equity share (including a share premium of Rs. 305 per equity share) ("Offer Price") aggregating to Rs. 3000.00#^ crores comprising a fresh issuance of 31,763,535# equity shares aggregating to Rs. 1000.00#^ crores by the company ("Fresh Issue") and an offer for sale of 63,492,063# equity shares aggregating to Rs. 2000.00# crores by BCP Topco Vii Pte. Ltd. ("Promoter Selling Shareholder", and such equity shares offered by the promoter selling shareholder, the "Offered Shares") ("Offer for Sale" and together with the fresh issue, the "Offer"). The offer shall constitute 22.33% of the post-offer paid-up equity share capital of the company. The offer included a reservation of 239,726# equity shares of face value of Rs. 10 each, aggregating to Rs. 7.00^ crores (constituting up to 0.06% of the post-offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the brlms offered a discount of Rs. 23 per equity share, that is, 7.30% of the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as "Net Offer". The offer and net offer shall constitute 22.33% and 22.28%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is Rs. 10 each. The offer price is 31.5 times the face value of the equity shares. #Subject to finalization of basis of allotment. ^After employee discount.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- HFC focused on the low income housing segment (ticket size less than Rs.1.5 million) in India with the highest AUM and net worth among our analyzed peers in Fiscal 2021, Fiscal 2022, Fiscal 2023 and nine months ended December 31, 2022 and December 31, 2023.
- Seasoned business model with strong resilience through business cycles.
- Extensive branch and sales office network, geographical penetration and sales channels which contribute significantly to loan sourcing and servicing.
- Robust, comprehensive systems and processes for underwriting, collections and monitoring asset quality.
- Access to diversified and cost-effective long-term financing with a disciplined approach to asset liability and liquidity management.
- The company Erstwhile Promoters are subject to ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact the company and the Equity Shares held by its Promoter, BCP Topco and the market price of the Equity Shares of the Company.
- The company is party to certain legal proceedings and any adverse outcome in these or other proceedings may adversely affect its business.
- The company depends on the accuracy and completeness of information provided by its potential borrowers and third-party service providers. Its reliance on any misleading information given by potential borrowers may affect its judgment of credit worthiness of potential borrowers, and the value of and title to the collateral, which may affect its business, results of operations, cash flows and financial condition.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.
- Any increase in the levels of non-performing assets in its AUM would adversely affect the company's business, results of operations, cash flows and financial condition.