Aadhar Housing Finance IPO ends with blockbuster subscription

Published on May 13, 2024 16:37

The initial public offer (IPO) of Aadhar Housing Finance received 1,78,65,45,247 bids for shares as against 7,00,89,373 shares on offer. The issue was subscribed 25.49 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 72.78 times. The Non Institutional Investors (NIIs) category was subscribed 16.50 times. The Retail Individual Investors (RIIs) category was subscribed 2.46 times.

The issue opened for bidding on 8 May 2024 and closed on 10 May 2024. The price band of the IPO was fixed at Rs 300 to 315 per share.

The offer comprised fresh issue of equity shares worth up to Rs 1,000 crore and an offer for sale of 6.35-6.67 crore equity shares aggregating up to Rs 2,000 crore.

The objectives of the fresh issue include augmenting the capital base to meet future capital requirements. The company expects to receive the benefits of listing the equity shares on the stock exchanges, including to enhance brand image among existing and potential customers and creation of a public market for equity shares in India.

Ahead of the IPO, Aadhar Housing Finance on Tuesday, 7 May 2024, raised Rs 897.89 crore from anchor investors. The board allotted 2.85 crore shares at Rs 315 each to 61 anchor investors.

Aadhar Housing Finance is a housing finance company (HFC) focused on the low-income housing segment with a ticket size of less than Rs 15 lakh. The average ticket size of loans was Rs 10 lakh, with an average loan-to-value of 58.3% end December 2023. The company has an extensive network of 487 branches, including 109 sales offices in 20 states and union territories end December 2023. The reach of the company extended to 10,926 pin codes across India end December 2023.

Aadhar offers a range of mortgage-related loan products, including loans for residential property purchase and construction, home improvement and extension loans, and loans for commercial property construction and acquisition.

The firm reported a net profit of Rs 547.88 crore and total income of Rs 1,895.17 crore for the nine months ended on 31 December 2023.