Aadar Housing Finance IPO Day 3: Aadhar Housing Finance Limited's Initial Public Offering (IPO) will hit the Indian primary market on May 8, 2024 and bidding for this offering will close this evening. This means investors have just one day to apply for the public offering. The company has fixed the IPO price band for Aadhar Housing Finance as follows: INR300～ INRStock Priced at $315 per share. Bookbuild issues are a combination of new stocks and OFS (Offer For Sale). The company aims to INR1 billion from new stocks, the rest INR$200 billion has been set aside for the OFS route. Meanwhile, the premium for Aadar Housing Finance shares has soared in the gray market after the start of bidding for bookbuild issues. Stock market observers say the company's shares are available at a premium. INR70 on the gray market today. They said the rise in Aadar Housing Finance's IPO gray market premium (GMP) could be attributed to the strong IPO subscription status of Aadar Housing Finance after two days of bidding. Ta.
Aadhar Housing Finance IPO Today's GMP
Market players said today that Aadar Housing Finance's IPO gray market premium (GMP) INR70, a significant increase from Thursday's GMP INR52. Despite the weak trend in Dalal Street, this rally is evidence of positive sentiment surrounding IPOs. They expect the stock to perform well on its listing day, further increasing their optimism.
Aadhar Housing Finance IPO Application Status
After two days of bidding, the Aadar Housing Finance IPO bookbuild issue was oversubscribed 1.56 times. The retail portion of the IPO is oversubscribed by 1.00x, indicating balanced interest from retail investors. The subscription ratio for the NII (non-institutional investors) segment is 2.04x, indicating high interest from wealthy individual investors and corporate investors. The QIB (Qualified Institutional Investor) portion is oversubscribed by 2.15 times, indicating high demand from institutional investors.
Aadar Housing Finance IPO Review
BP Equities, a leading financial institution, has given 'subscribe' rating to Aadhar Housing Finance IPO. They believe the stock is valued at 3.1x 2023 book value P/BVPS, which is fair value relative to its peers. They recommend subscribing to the issue based on this rating. This positive review further increased the overall positive sentiment regarding the IPO.
Marwadi Shares and Finance advised investors to apply for a public issue and said, “Considering the book value, INR52,492 million on a post-issue basis, the company plans to list at a P/B of 2.56 times market capitalization. On the other hand, the P/B of its peers Aptus Value Housing Finance India Limited, Aavas Financiers Limited, Home First Finance Company India Limited, and India Shelter Finance Corporation Limited is 4.65x, 3.36x, 4.05x, and 4.59x. X. We assign a 'Subscribe' rating to this IPO as the company has strong resiliency across the business cycle and a seasoned business model with robust processes for underwriting, collections and asset quality monitoring. It is also available at a reasonable valuation compared to its peers. ”
Aditya Birla Ltd, Ashika Research, Canara Bank Securities, Nirmal Bang, and SMIFS are all reputed financial companies that have tagged the issue of this book as 'Subscribe'. This collective support should give potential investors confidence in his IPO potential.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or brokerages and not of Mint. Because market conditions can change rapidly and individual circumstances may vary, investors are strongly encouraged to consult a certified professional before making any investment decisions.
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