Aadhar Housing Finance's IPO will open for subscription from today (Wednesday, May 8) and will close on Friday, May 10. The IPO price range for Blackstone-backed businesses is set below. INR300～ INR315 yen per share.IPO financing by Adal Housing Finance INR$880 million was raised from anchor investors on Tuesday, May 7th. Bids he can make in multiples of 47 shares, and the minimum bid is 47.
Aadhar Housing Finance IPO has allocated 35% of the issue size to retail investors, 15% to non-institutional investors (NII) and 50% of the issue size to qualified institutional investors (QIBs).The company offers the following discounts INR$23 per share for employees.
Aadhar Housing Finance Limited is a housing finance company established in 2010 with a focus on low-income groups.
Customers from tier 4 and 5 cities of India are the target market for Deep Impact branch offices.
Also read: Aadhar Housing Finance IPO to open tomorrow;10 things you need to know before subscribing to an issue
The company employed 12,221 Aadhar Mitras as of September 30, 2023, and pays referral fees for finding loans for customers.
The organization offers a wide range of mortgage financing options for the construction, renovation, and purchase of residential and commercial properties.
The company has an extensive network of 471 branches, including 91 sales offices, as of September 30, 2023. These branches and offices support approximately 10,926 PIN codes across India and are spread across 20 states and union territories.
According to the Red Herring Prospectus (RHP), listed peers of Aadhar Housing Finance are Aptus Value Housing Finance India Ltd (P/E ratio of 31.3), Aavas Financiers Ltd (P/E ratio of 28.1) and Home First Finance Company India. Ltd (P/E ratio 34.9) and India Shelter Finance Corporation Ltd (P/E ratio 33.1).
From March 31, 2022 to March 31, 2023, Aadhar Housing Finance Limited's profit after tax (PAT) grew by 22.22% and its revenue grew by 18.22%.
Also read: Aadhar Housing Finance IPO to open on May 8; What does GMP show before subscription?
Adar Housing Finance IPO Details
Adar Housing Finance INRThe 300 billion yen initial public offering comprises an OFS (offer for sale) by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group. INRNew issuance of shares worth $200 billion INR100 billion.
Promoter BCP Topco VII Pte plans to sell its interest in OFS. 98.7% of the issued, subscribed and paid-up share capital of the pre-offer is currently held by BCP Topco, the promoter and an affiliate of funds managed by Blackstone.
The company plans to use the net proceeds for general corporate activities and to meet future capital requirements for further financing.
The lead managers are SBI Capital Markets Limited, Nomura Financial Advisory and Securities (India) Private Limited, Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and Citigroup Global. MARKETS INDIA PRIVATE LIMITED. Kfin Technologies Limited is acting as registrar for this publication.
Also read: Aadhar Housing Finance IPO: Blackstone-backed IPO mobilizes INRRaised $898 million from anchor investors ahead of subscription
Aadar Housing Finance IPO Review
BP Equities Private Limited
The brokerage maintains that the company and its management team's capabilities are demonstrated by its overall growth, portfolio performance, asset quality and sustained profitability during this period. Aavas Financiers (14.1%) and Home First Finance (13.5%) are the next two financial companies that achieved the highest return on equity in FY2023, while Aadhar Housing Finance achieved his second highest return on equity of 15.9%. I reported it. Among the companies in the same industry analyzed, the company claimed that its personnel costs for FY2013 were 2.10%, the third lowest for the same period. Aadhar Housing Finance, one of the peer groups analyzed, reported annualized prepayment yield and return on equity of 14.2% and 18.4%, respectively, for the nine months ended December 31, 2023.
The company said it expects its results to improve over time, primarily due to its low-income housing sector advantage, lower borrowing costs and improved profitability among its peers. The stock is priced at 3.1x P/BVPS to FY23 book value, with a price band above Rs 100 crore. They believe they are reasonable compared to their rivals. As a result, the broker proposes to give the stock his SUBSCRIBE rating.
Intermediaries argue that there are some significant obstacles that need to be carefully considered. The creditworthiness of low-income customers and the rise in non-performing assets (NPAs) expose Aadhaar to unique risks. Additionally, the company faces fluctuations in lending rates and competes in a highly competitive field.
Aadhar's IPO valuation of 22.8x P/E and 3.36x P/BV seems reasonable, but caution should be taken as the company relies heavily on debt. As a result, the brokerage advises only high-risk investors seeking continued exposure to the affordable housing market to consider this IPO.
Aadhar Housing Finance IPO Today's GMP
Aadhar Housing Finance IPO GMP is +70. This shows that Aadhar Housing Finance stock is trading at a premium. INRAccording to investorgain.com, it ranks 70th in the gray market.
Given the upper end of the IPO price band and the current premium in the gray market, Aadhar Housing Finance stock is expected to list at: INR385 shares per share, 22.22% higher than the IPO price. INR315.
A “gray market premium” indicates that investors are willing to pay more than the issue price.
Also read: Dates announced for Blackstone-backed Aadhar Housing Finance IPO;Check details
Disclaimer: The opinions and recommendations expressed above are those of individual analysts, experts, and brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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