Aadhar Housing Finance is coming up with an IPO worth INR 3,000 crores, consisting of a fresh issue of shares worth INR 1,000 crores and an offer for sale worth INR 2,000 crores. The company aims to meet the future capital requirements towards onward lending.
Aadhar Housing Finance Ltd IPO – Important Dates
| Aadhar Housing Finance IPO Date | May 8, 2024 to May 10, 2024 |
| Aadhar Housing Finance IPO Listing Date | May 15, 2024 |
| Aadhar Housing Finance IPO Price | INR 300-315 per share |
| Aadhar Housing Finance IPO Lot Size | 47 shares |
| Aadhar Housing Finance IPO Total Issue Size | INR 3,000 crores |
| Aadhar Housing Finance IPO Basis of Allotment | May 13, 2024 |
| Aadhar Housing Finance IPO Initiation of Refunds | May 14, 2024 |
| Aadhar Housing Finance IPO Credit of Shares to Demat | May 14, 2024 |
| Aadhar Housing Finance IPO Issue Type | Book Built Issue IPO |
| Aadhar Housing Finance IPO Listing At | BSE, NSE |
Aadhar Housing Finance Limited IPO – Company Profile
Originally incorporated as ‘Vysya Bank Housing Finance Limited’, The company is a Housing Finance Company focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers who require small-ticket mortgage loans (ticket sizes less than INR 0.15 crores).
The company operates a financially inclusive, customer-centric lending business and believes that the business model contributes significantly to the economic uplift of the target customers by contributing to an improved standard of living. The company’s presence in urban and semi-urban locations across India provides a source of employment in these locations.
The company has an extensive network of 487 branches, including 109 sales offices, as of December 31, 2023. The branches and sales offices are spread across 20 states and union territories, operating in approximately 10,926 pin codes across India, as of December 31, 2023.
Since June 2019, BCP Topco, which is the Promoter and is an affiliate of funds managed and/or advised by affiliates of Blackstone Group Inc (collectively “Blackstone”), currently holds 98.72% of the pre-offer issued, subscribed, and paid-up Equity Share capital. The company benefits from the resources, relationships, and expertise of Blackstone, one of the world’s leading investment firms.
Aadhar Housing Finance Limited IPO Review
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in miilions) | 17,285.60 | 20,432.30 | 18,950.20 |
| Equity (₹ in millions) | 31,466.90 | 36,976.60 | 42,491.60 |
| Expenses (₹ in millions) | 11,612.00 | 13,227.00 | 11,941.90 |
| Profit and Loss After Tax (₹ in millions) | 4,448.50 | 5,447.60 | 5,478.80 |
| RoNW (%) | 14.10% | 14.70% | 12.90% |
| Diluted EPS only (₹) | 10.90 | 13.40 | 13.50 |
| NAV per Equity Share (₹) | 79.70 | 93.70 | 107.60 |
| Total Assets (in millions) | 1,43,758.10 | 1,66,178.70 | 1,80,355.70 |
| Total Liabilities (in millions) | 1,12,291.20 | 1,29,202.10 | 1,37,864.10 |
Aadhar Housing Finance Limited IPO Fundamental Analysis
Considering the positive revenue and profitability trends, along with a strengthening capital base and efficient cost management, investing in this IPO could be considered. However, investors should conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
- Revenue and Profitability: The company has shown growth in revenue and profitability, which is a positive sign for investors.
- Capital Base: The increasing equity indicates a strengthening capital base, which can support future growth initiatives.
- Efficiency: The company’s ability to manage expenses in line with revenue growth indicates operational efficiency.
- Valuation: The increasing NAV per Equity Share suggests a favorable valuation trend.
- Risk: The fluctuations in RoNW and the slight decrease in revenue by December 2023 should be considered as potential risks.
Aadhar Housing Finance IPO Peer Comparison
Aadhar Housing Finance Limited has substantial revenue but lacks P/E information. Aptus Value Housing Finance India Limited exhibits a high P/E ratio and moderate EPS. Aavas Financiers Limited shows a strong P/E ratio, high EPS, and RoNW. Home First Finance Company India Limited displays a high P/E ratio and EPS. India Shelter Finance Corporation Limited showcases a good P/E ratio and EPS.
| Company | Total Revenue from operations (₹ million) | Face Value (₹) | P/E (₹) | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | Net asset value per share (₹) |
| Aadhar Housing Finance Limited | 20,432.30 | 10 | NA | 13.80 | 13.40 | 16.50 | 93.70 |
| Aptus Value Housing Finance India Limited | 10,933.60 | 2 | 31.30 | 10.10 | 10.10 | 16.10 | 67.10 |
| Aavas Financiers Limited | 16,087.60 | 10 | 28.10 | 54.40 | 54.30 | 14.10 | 413.60 |
| Home First Finance Company India Limited | 7,909.90 | 2 | 34.90 | 26.00 | 25.20 | 13.50 | 206.50 |
| India Shelter Finance Corporation Limited | 5,845.30 | 5 | 33.10 | 17.80 | 17.50 | 13.40 | 141.40 |
Aadhar Housing Finance Limited IPO Objective
The main objectives are to strengthen Tier 1 capital by utilizing INR 750 crores for competitive positioning and to allocate the remaining funds for general corporate purposes and strategic initiatives.
- To meet the capital requirements: The company plans to utilize INR 750 crores from the raised funds towards maintaining higher Tier 1 capital will help the company to remain competitive with its industry peers.
- General corporate purposes and inorganic growth: The Company plans to deploy the balance of the funds towards meeting expenses incurred in the ordinary course of business, such as strategic initiatives including expansion of the distribution network, advancement of information technology, repayment of indebtedness from time to time, meeting operating expenses and meeting general corporate exigencies and contingencies and any other business requirements.
Aadhar Housing Finance IPO Risks And Challenges
The company’s risks include negative cash flow trends, vulnerability to interest rate volatility leading to liquidity challenges, legal proceedings impact on business, and regulatory investigations affecting equity shares and market price.
- The company has generated negative cash from operating activities in the last few years. Sustained negative cash flow may affect the financial health of the company.
- The company is vulnerable to volatility in interest rates and may face interest rate and maturity mismatches between its assets and liabilities, which may cause liquidity issues.
- The company is a party to certain legal proceedings and any adverse outcome in these or other proceedings may adversely affect the business.
- The Erstwhile Promoters of the company 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 the Promoter, BCP Topco, and the market price of the equity shares of the company.
Aadhar Housing Finance Ltd IPO – Industry & Market Potential
The housing shortage in India has only increased since the estimates at the time of the twelfth five-year plan. As per the report of the RBI-appointed Committee on the Development of Housing Finance Securitization Market (September 2019), the housing shortage in India was estimated to increase to 100 million units by 2022. The majority of the household shortage is for LIG and EWS with a small proportion of shortage (5-7%) of the shortage coming from MIG or above. Total incremental housing loan demand, if this entire shortage is to be addressed, is estimated to be in the region of ₹ 50 trillion to ₹ 60 trillion, as per the Committee report. In comparison, the overall housing loans outstanding (excluding Pradhan Mantri Awas Yojana (“PMAY”) loans) as of March 2023 were around ₹ 31.1 trillion. This indicates the immense latent potential of the market if concrete action is taken to address the shortage of houses in India.
Aadhar Housing Finance IPO – Type of Offer
Aadhar Housing Finance includes a fresh issue worth INR 1,000 crores and an offer for sale worth 2,000 crores.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1,000 crores. The company aims to meet the future capital requirements towards onward lending.
- Offer for sale: Aadhar Housing Finance Limited is offering to sell 6.34 crore existing shares. The following are the details of the existing shareholder, who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| BCP Topco VII Pte. Ltd. | 6.34 crores |
Aadhar Housing Finance IPO Offer Size
The main objectives of Aadhar Housing Finance’s IPO worth INR 3,000 crores are to fulfill future capital needs for onward lending, with a fresh issue of INR 1,000 crores and an offer for sale of INR 2,000 crores.
Aadhar Housing Finance Limited IPO Allotment Structure
Aadhar Housing Finance Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. A portion of the issue is reserved for employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Employee Reservation Portion: A portion of the issue is reserved for the employees.
How to apply for Aadhar Housing Finance Limited IPO?
To apply for the Aadhar Housing Finance IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
1. Check for IPO Details: Once your account is active, you can check for the Aadhar Housing Finance IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.
You can apply for the Aadhar Housing Finance IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Aadhar Housing Finance’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or
something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Aadhar Housing Finance IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Aadhar Housing Finance IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Aadhar Housing Finance IPO:
● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Aadhar Housing Finance IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Aadhar Housing Finance Ltd IPO Offer Registrar
The registrar for the Aadhar Housing Finance IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower-B, Plot 31 & 32,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana, India
E-mail: [email protected]
Website: www.kfintech.com
Aadhar Housing Finance IPO – FAQs
The allotment date of the Aadhar Housing Finance IPO is May 13, 2024.
The price band of the issue is INR 300-315 per share.
The offer size of Aadhar Housing Finance is INR 1,841.76 crores, consisting of a
fresh issue of shares worth INR 760 crores and an offer to sell 1,081.76 crore shares. The company aims to manage debt, finance projects, and pursue growth opportunities for sustainable development.
The listing date of Aadhar Housing Finance’s IPO is May 15, 2024.
