The much-anticipated IPO of Aadhar Housing Finance is officially open to the public starting today. Aadhar Housing Finance IPO is priced between Rs 300 and Rs 315 per share, with the subscription period running through May 10. Investors looking to get in on the action will need to purchase a market lot of 47 shares.
The IPO Breakdown
The Rs 3,000-crore Aadhar Housing Finance IPO consists of a mix of new shares and an offer-for-sale (OFS). The fresh equity issue is valued at Rs 1,000 crore, while the OFS component is Rs 2,000 crore, coming from BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc. The share distribution includes half the total IPO for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.
BCP Topco currently holds 98.72% of the company’s stake. Aadhar Housing Finance plans to use Rs 750 crore of the IPO proceeds to fund future lending and some for general corporate purposes.
Anchor Investor Participation
As part of the IPO process, Aadhar Housing Finance has already raised about Rs 898 crore from anchor investors. The company allocated 2,85,04,761 equity shares to these investors at a price of Rs 315 per share (including a share premium of Rs 305). Notably, 35.64% of the allocation went to 11 domestic mutual funds, including HDFC Mutual Fund, ICICI Prudential Mutual Fund, and Axis Mutual Fund.
Other prominent investors in the anchor allocation include Morgan Stanley Asia (Singapore) Pte Ltd, Amundi Funds, and Neuberger Berman Emerging Markets Equity Fund.
About Aadhar Housing Finance IPO
Aadhar Housing Finance specializes in mortgage loans for economically weaker and low-to-middle-income customers in India. The company has a robust network of 487 branches as of December 2023, with a scalable technology infrastructure supporting its operations.
The company’s assets under management (AUM) are the highest among its industry peers, with gross AUM growing from Rs 165,664.6 million at the end of 2022 to Rs 198,651.6 million by December 2023, reflecting a CAGR of 17.3% from FY2021 to December 2023.
Aadhar Housing Finance’s AUM is distributed across India, with only 28.3% and 27.6% of its Gross AUM coming from the top two states as of March 31 and December 31, 2023, respectively.
Conclusion
Aadhar Housing Finance’s Rs 3,000-crore IPO is now open with shares priced at Rs 300-315. The company, backed by Blackstone Group Inc., aims to raise funds for future lending and general corporate purposes. The IPO ends May 10, with anchor investors contributing around Rs 898 crore in early participation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
