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AADHAR HOUSING FINANCE IPO

IPO Details

-
-
47 Shares
₹ 14,805
₹ 300 – 315
₹ Up to 3000 Cr

Issue timeline

  • -
  • 13-May-2024
  • 14-May-2024
  • 14-May-2024
  • 15-May-2024

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- A HFC focused on the low income housing segment (ticket size less than ₹1.5 million) in India
- Had the highest AUM and net worth among their analyzed peers in FY2021, FY2022, FY2023 and nine months ended December 31, 2022 and December 31, 2023.
- Have a presence in 20 states and union territories, which is the highest among the peers as of March 31, 2023(Source: CRISIL Report)

Strengths & Risks

Strengths (3)

Seasoned business model with strong resilience through business cycles
Through various business cycles, they have been able to leverage the (i) inherent strength of customer centric business model, (ii) extensive branch and sales office network, and (iii) the expertise of professional management team. Their diversified products offering allows them to cater to retail customer base, comprising salaried and self-employed customers in both formal and informal segments (source: Company RHP)

Risks (2)

Have had negative net cash flows in the past
They have, in the past, experienced negative net cash flows in investing activities and negative net cash flows in operating activities on account of fresh disbursements of loans made to customers. They cannot assure that their net cash flow will be positive in the future, which could adversely affect their ability to, among others, fund operations or pay debts in a timeline manner, which could in turn adversely affect business, cash flows, financial condition and results of operations (Source: Company RHP)

  • Seasoned business model with strong resilience through business cycles
    Through various business cycles, they have been able to leverage the (i) inherent strength of customer centric business model, (ii) extensive branch and sales office network, and (iii) the expertise of professional management team. Their diversified products offering allows them to cater to retail customer base, comprising salaried and self-employed customers in both formal and informal segments (source: Company RHP)

  • Extensive branch and sales office network
    They have a pan-India branch and sales office network. Since their establishment of sales offices in the last quarter of FY2023, as of March 31, 2023 and December 31, 2023, they had 469 and 487 branches (including 94 and 109 sales offices, respectively) across India covering 20 states and union territories of India, respectively. They have modelled their branches to meet the local requirements of the location they are set up in.(Source: Company RHP)

  • Robust, comprehensive systems and processes
    They have implemented a robust and comprehensive credit assessment, risk management and collections framework to identify, monitor and manage risks inherent in their operations. They exclusively finance retail customers, a majority of whom are salaried individuals purchasing residential properties. They have also adopted an internal 'risk appetite statement' that sets out the aggregate level and types of risk they are willing to accept while achieving their business objectives. (Source: Company RHP)

  • Have had negative net cash flows in the past
    They have, in the past, experienced negative net cash flows in investing activities and negative net cash flows in operating activities on account of fresh disbursements of loans made to customers. They cannot assure that their net cash flow will be positive in the future, which could adversely affect their ability to, among others, fund operations or pay debts in a timeline manner, which could in turn adversely affect business, cash flows, financial condition and results of operations (Source: Company RHP)

  • Vulnerable to the volatility in interest rates
    Their operations are particularly vulnerable to volatility and mismatches in interest rates. Their net interest income and profitability directly depend on the difference between the average interest rate at which they lend and the average interest rate at which they borrow. Further, an increase in general interest rates in the economy could reduce the overall demand for housing finance and impact their growth. (Source: Company RHP)

Financials

Net Worth
Total Income
Total Borrowings
Profit after Tax
Basic Earning Per Share

Industry Overview

- Credit penetration is lower in India compared to other countries : In terms of the credit to GDP ratio, India has a low credit penetration compared with other developing countries, such as China indicating the potential that can be tapped. Similarly, in terms of credit to households as a proportion of GDP as well, India lags other markets.
- Housing loans accounts for 46% of overall retail loans as of March 31, 2023: As of March 31, 2023, housing finance accounts for almost half of overall retail loans in India followed by auto loans (17%), personal loans (17%) and gold loan (12%).

Aadhar Housing Finance IPO FAQs

What is the minimum lot size and investment required for Aadhar Housing Finance IPO?

The lot size is 47 shares and minimum investment required is Rs. 14,805 for Aadhar Housing Finance IPO

Aadhar Housing Finance IPO is mainboard IPO of issue size up to Rs.3000 Crores

Aadhar Housing Finance IPO issue dates are from 08th -10th May, 2024.

The allotment date is 13th May2024 and listing date is 15th May, 2024 for Aadhar Housing Finance IPO.

The price band of Aadhar Housing Finance IPO is Rs.300 – Rs.315.

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Aadhar Housing Finance IPO

₹ 14,805
47 Shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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