Aadhar Housing Finance IPO

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 Ended31 Dec 202331 Mar 202331 Mar 202231 Mar 2021
Profit After Tax547.88545.34446.20340.46
Net Worth4,249.103,697.603,146.632,692.76
Total Borrowing13,127.5912,153.4510,674.5910,374.47

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 DateMay 8, 2024 to May 10, 2024
Listing DateWednesday, May 15, 2024
Face Value₹10 per share
Price Band₹300 to ₹315 per share
Lot Size47 Shares
Total Issue Size95,238,095 shares (aggregating up to ₹3,000.00 Cr)
Fresh Issue31,746,032 shares (aggregating up to ₹1,000.00 Cr)
Offer for Sale63,492,063 shares of ₹10 (aggregating up to ₹2,000.00 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE

Lot Allocation details

Retail (Min)147₹14,805
Retail (Max)13611₹192,465
Large-HNI (Min)683196₹1,006,740

Allotment Schedule

Basis of AllotmentMonday, May 13, 2024
Initiation of RefundsTuesday, May 14, 2024
The credit of Shares to DematTuesday, May 14, 2024
Listing DateWednesday, May 15, 2024
Cut-off time for UPI mandate confirmation

5 PM on May 10, 2024

IPO reservation

Investor CategoryShares Offered
QIB Shares OfferedNot More than 50% of the Net Issue
Retail Shares OfferedNot Less than 35% of the Net Issue
NII (HNI) Shares OfferedNot Less than 15% of the Net Issue

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