Aadhar Housing Finance IPO: Blackstone-backed IPO mobilises ₹898 crore from anchor investors ahead of subscription

Aadhar Housing Finance IPO: Aadhar Housing Finance has raised ₹898 crore from anchor investors a day ahead of its IPO subscription opening for bidding. Aadhar Housing Finance IPO will open for its three-day subscription on Wednesday, May 8 and close on May 10, 2024. The price band for the housing finance company's IPO has been fixed in the range of ₹300 to ₹315 per equity share of the face value of ₹10 each.

Also Read: Aadhar Housing Finance IPO to open tomorrow; Here are 10 things to know before you subscribe to the issue

Aadhar Housing Finance Ltd has allotted 2.85 crore equity shares to 61 anchor investors at the upper price band of ₹315 per equity share (including premium of ₹305 per equity shares), according to a circular filed on stock exchange BSE.

Morgan Stanley Asia (Singapore) Pte Ltd, Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, Theleme India Master Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF and Quant MF are among the anchor investors.

Aadhar Housing Finance IPO Details:

The ₹3,000-crore IPO of Aadhar Housing Finance is a combination of a fresh issue of equity shares worth ₹1,000 crore and an OFS (offer for sale) of ₹2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group.

Within the OFS, promoter BCP Topco VII Pte will divest its stake. BCP Topco, the promoter, and an affiliate of funds managed by Blackstone, currently possess 98.7 per cent of the pre-offer issued, subscribed, and paid-up equity share capital.

The housing finance company aims to raise ₹3,000 crore through the public issue. Retail investors are required to invest a minimum amount of ₹14,805 in the IPO, with each lot comprising 47 shares. Hence, all investors can bid for a minimum of 47 shares and in multiples thereof.

Aadhar Housing Finance has reserved half of the issue size for the qualified institutional buyers (QIBs), 35 per cent for the retail investors and remaining 15 per cent for the non-institutional investors (NIIs). The company is offering a discount of ₹23 per share to its employees.

The allotment of shares for the Aadhar Housing Finance IPO is anticipated to be completed on Monday, May 13, 2024. The shares of the Blckstone-backed company will list on BSE, NSE with a tentative listing date fixed as Wednesday, May 15, 2024.

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets Limited are the book running lead managers. Kfin Technologies Limited is the registrar for the issue. BCP Topco VII Pte. Ltd. is the promoter of the company, according to the draft papers.

Through its maiden issue, Aadhar Housing Finance plans to utilise ₹750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending, while a portion will be used for general corporate purposes.

Also Read: Aadhar Housing Finance IPO price band set at ₹300-315 per share; issue to open on May 8

Aadhar Housing Finance Company Details

Aadhar Housing Finance offers 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. The organisation is focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers, who require small-ticket mortgage loans. 

Its customer base primarily resides in tier 4 and tier 5 towns across India. The company has a network of 471 branches, including 91 sales offices, as of September 30, 2023. The average ticket size of their loans was ₹0.9 million with an average loan-to-value of 57.6 per cent and 58.1 per cent, as of September 30, 2022 and September 30, 2023, respectively.

The company benefits from the resources, relationships and expertise of Blackstone, one of the world's leading investment firms. During the financial year 2022-2023, Aadhar Housing Finance achieved a net profit of ₹545.34 crore, generated from a revenue of ₹2,043.52 crore.