- Price Band fixed at ₹300 to ₹315 per equity share of face value of ₹10 each
- Bid/ Offer will open on Wednesday, May 8, 2024 and close on Friday, May 10, 2024. The Anchor Investor Bidding Date shall be Tuesday, May 7, 2024
- Bids can be made for a minimum of 47 Equity Shares and in multiples of 47 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, MAY 4
The Blackstone Group-backed Aadhar Housing Finance Limited on Friday announced it proposes to open the initial public offering of its Equity Shares on Wednesday, May 8, 2024. The bidding for the offer will conclude on May 10.
The IPO price band has been fixed at ₹300 to ₹315 per share. At the upper end of the price band, the company plans to raise ₹3,000 crore from the issue. Aadhar Housing Finance IPO comprises a fresh issue of 3.17 crore equity shares aggregating to ₹1,000 crore and an offer for sale (OFS) component of 6.35 crore shares aggregating to ₹2,000 crore by promoter BCP Topco.
BCP Topco VII Pte, an affiliate of funds managed by affiliates of Blackstone Group Inc, currently holds a 98.72 percent stake in the housing finance company. In fact, it has been the promoter of the company since June 2019.
The Anchor Investor Bidding Date shall be Tuesday, May 7, 2024
Bids can be made for a minimum of 47 Equity Shares and in multiples of 47 Equity Shares thereafter.
Aadhar Housing Finance which focused on the low-income housing segment with small-ticket mortgage loans will utilise ₹750 crore out of the net fresh issue proceeds for its future capital requirements towards onward lending, and the remaining funds for general corporate purposes.
Amit Dixit, Head of Private Equity Asia, Blackstone, said, “The listing is a significant milestone for Aadhar Housing Finance Limited, and its transformation is a great example of what we do best: Building businesses that build India. We brought our scale, network, and best global practices to grow the business, and empowered the company in digitizing its processes, end to end from origination to collection. It has been a wonderful partnership, and we couldn’t be more proud of where the business stands today.”
Mukesh Mehta, Senior Managing Director in Blackstone Private Equity, said, “It is rewarding to be a part of Aadhar Housing Finance Limited’s mission to enable underserved Indians to own homes and play a role in the company’s transformation and growth. Our priority has been to build through close alignment with the Company’s leadership and using Blackstone’s access to capital, resources, and our technology expertise.”
Rishi Anand, Managing Director & Chief Executive Officer, Aadhar Housing Finance Limited, said, “This is a significant milestone in our journey towards empowering individuals and families with the keys to their own homes. With the true meaning of ‘Ghar Banega, Toh Desh Banega’, we embrace the responsibility of nation-building and laying a foundation for stronger communities.”
The average ticket size of its loans was ₹10 lakh with an average loan-to-value of 58.3 percent as of December 2023. The salaried people segment contributed 57.2 percent to its AUM and the remaining 42.8 percent contribution came from the self-employed segment in 9MFY24, while the ratio of these segments in FY23 was 58.6 percent: 41.4 percent.
Its gross assets under management (AUM) at ₹19,865.2 crore at the end of December FY24 increased by 20 percent over the same period, while the AUM was ₹17,222.8 crore at the end of the year March FY23, growing 16.5 percent over the previous year.
Aadhar Housing has reserved 50 percent of the net public issue size for qualified institutional buyers (QIB), 15 percent for non-institutional investors, and the remainder 35 percent for retail investors.
Net profit for the nine-month period ended December FY24 (9MFY24) jumped 35.6 percent to ₹547.9 crore compared to the same period previous fiscal. Net interest income rose nearly 30 percent during the same period to ₹1,170.4 crore, with NIM expanding 100 bps at 9 percent.
The Equity Shares will be listed on the BSE Limited and National Stock Exchange of India Limited.
ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the Offer.
