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Aadhar Housing Finance IPO is a book-built issue of Rs 3,000.00 crores. The issue is a combination of a fresh issue of 3.17 crore shares aggregating to Rs 1,000.00 crores and an offer for sale of 6.35 crore shares aggregating to Rs 2,000.00 crores.
Aadhar Housing Finance IPO opens for subscription on May 8, 2024, and closes on May 10, 2024. The IPO price band is set at ₹300 to ₹315 per share and the minimum lot size for an application is 47 Shares.
Company Summary
According to CRISIL, this company is an HFC focused on the low-income housing segment (ticket size less than ₹1.5 million) in India and they 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.
They are a retail-focused HFC focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers, who require small-ticket mortgage loans.
The average ticket size of their loans was ₹0.9 million and ₹1.0 million with an average loan-to-value of 57.7% and 58.3%, as of December 31, 2022 and December 31, 2023, respectively.
They offer 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.
They operate a financially inclusive, customer-centric lending business and believe that their business model contributes significantly to the economic uplift of their target customers by contributing to an improvement in their standard of living.
Company Strengths
They have an extensive network of 487 branches* including 109 sales offices, as of December 31, 2023. Their 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
As of December 31, 2023, they have a total of 3,885 employees, and Aadhar Sales and Services Private Limited (“ASSPL”), their 100% owned subsidiary has a total of 1,875 employees. ASSPL provides manpower services, arranges loans, deals in properties and other financial instruments, and provides various other financial services.
They have a strong, experienced, and dedicated management team, with their senior management having an average of 25 years of experience in the financial services industry in India.
Company Financials
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 18,035.57 | 16,617.87 | 14,375.81 | 13,630.33 |
| Revenue | 1,895.17 | 2,043.52 | 1,728.56 | 1,575.55 |
| Profit After Tax | 547.88 | 545.34 | 446.20 | 340.46 |
| Net Worth | 4,249.10 | 3,697.60 | 3,146.63 | 2,692.76 |
| Total Borrowing | 13,127.59 | 12,153.45 | 10,674.59 | 10,374.47 |
Amount in ₹ Crore | ||||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds towards the following:
- To meet future capital requirements towards onward lending
- General corporate purposes
Promoters of the company
BCP Topco is the Promoter of the Company. The Promoter currently holds an aggregate of 389,683,420 Equity Shares, aggregating to 98.72% of the pre-offer issued, subscribed, and paid-up Equity Share capital of the Company.
IPO details
| IPO Date | May 8, 2024 to May 10, 2024 |
| Listing Date | Wednesday, May 15, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹300 to ₹315 per share |
| Lot Size | 47 Shares |
| Total Issue Size | 95,238,095 shares (aggregating up to ₹3,000.00 Cr) |
| Fresh Issue | 31,746,032 shares (aggregating up to ₹1,000.00 Cr) |
| Offer for Sale | 63,492,063 shares of ₹10 (aggregating up to ₹2,000.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 47 | ₹14,805 |
| Retail (Max) | 13 | 611 | ₹192,465 |
| Small-HNI(Min) | 14 | 658 | ₹207,270 |
| small-HNI(Max) | 67 | 3149 | ₹991,935 |
| Large-HNI (Min) | 68 | 3196 | ₹1,006,740 |
Allotment Schedule
| Basis of Allotment | Monday, May 13, 2024 |
| Initiation of Refunds | Tuesday, May 14, 2024 |
| The credit of Shares to Demat | Tuesday, May 14, 2024 |
| Listing Date | Wednesday, May 15, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on May 10, 2024 |
IPO reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not More than 50% of the Net Issue |
| Retail Shares Offered | Not Less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not Less than 15% of the Net Issue |
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