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Aadhar Housing Finance IPO subscribed 43%

Published on May 08, 2024 17:11

The initial public offer (IPO) of Aadhar Housing Finance received 3,04,53,979 bids for shares as against 7,00,89,373 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (8 May 2024). The issue was subscribed 0.43 times.

The issue opened for bidding on Wednesday (8 May 2024) and it will close on Friday (10 May 2024). The price band of the IPO is fixed at Rs 300 to 315 per share. An investor can bid for a minimum of 47 equity shares and in multiples thereof.

The offer comprises fresh issue of equity shares worth up to Rs 1,000 crore and an offer for sale aggregating up to Rs 2,000 crore from the promoter. The promoter shareholding in the company will decline to 83.9% post- IPO from 98.7% pre-IPO.

The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements. The firm expects to receive the benefits of listing the equity shares on the stock exchanges, including enhancing 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 company has an extensive network of 487 branches, including 109 sales offices in 20 states and union territories 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 income from operations of Rs 1,673.32 crore for the nine months ended on 31 December 2023.

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