Aadhar Housing Finance IPO: From financials to key risks, here are 10 things to know from RHP before investing

Aadhar Housing Finance IPO: The subscription period for the Aadhar Housing Finance IPO began on Wednesday, May 8, and will end on Friday, May 10. From financials to key risks, 10 things that investors need to know from RHP before investing are as follows-

1.Aadhar Housing Finance IPO: Subscription details

Aadhar Housing Finance IPO subscription period began on Wednesday, May 8, and will finish today i.e. Friday, May 10. The price band for the IPO had been set at ₹300 to ₹315 per share. for each equity share having a face value of ₹10 for Blackstone backed housing finance Company. The investors need to apply for 47 shares and in multiples thereafter. Aadhar Housing Finance IPO already had ensured Rs. 898 crore from anchor investors.

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In the Aadhar Housing Finance IPO, retail investors have been allocated 35% of the issue size, non-institutional investors (NIIs) 15%, and qualified institutional buyers (QIBs) allocation stans at 50%.

2.Aadhar Housing Finance IPO: Objectives of the issue

The ₹3,000.00 crore Aadhar Housing Finance IPO is a book-built offering. The issue consists of an offer to sell 6.35 crore shares, valued at an aggregate of ₹2,000.00 crores, and a fresh issue of 3.17 crore shares, valued at ₹1,000.00 crores.

Aadhar Housing Finance has proposed to utilize the net Proceeds towards the following objectives

(i) To meet future capital requirements towards onward lending; and

(ii) General corporate purposes.

In addition, our Aadhar Housing Finance has highlighhted that it expects to receive the benefits of listing of the Equity Shares on the Stock Exchanges, which include enhancement of Aadhar Housing Finance brand name and creation of a public market for its Equity Shares in India.

3.Aadhar Housing Finance IPO: About the Company

Aadhar Housing Finance concentrated on the Indian low-income housing market, for tickets size of less than ₹1.5 million. Aadhar Housing Finance highlighted that it had the highest AUM (assets under management) and net worth among its analyzed peers in six months ended September 30, 2023, according to CRISIL Additionally, it had the most active accounts in FY2023 based on the peer set that CRISIL examined.

The organization offers a range of mortgage financing options for building, renovating, and buying residential and commercial real estate. Aadhar Housing Finance has an extensive network of 471 branches, including 91 sales offices, as of September 30, 2023. These branches and sales offices serve about 10,926 pin codes in India and are dispersed over 20 states and union territories.

4.Aadhar Housing Finance IPO: Key Risks

The Erstwhile Promoters of Aadhar Housing Finance are subject to certain ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact it and the Equity Shares held by its Promoter, BCP Topco and the market price of the Equity Shares of the Company.

Aadhar Housing Finance Promoter will continue to exert substantial voting control over the Company after completion of the Offer, which may limit its ability to influence the outcome of matters submitted for approval of our shareholders.

5.Aadhar Housing Finance IPO: Promoter

The promoter of the company is BCP Topco VII Pte. Ltd.

BCP Topco, the Promoter, was incorporated as a private limited company under the laws of Singapore on December 27, 2017 having UEN: 201736996M. The registered office of BCP Topco is located at 77 Robinson Road #13-00, Robinson 77, Singapore 068896. The principal activity of BCP Topco is to serve as an investment holding company.

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6.Aadhar Housing Finance IPO: Financials

The consolidated net profit of Aadhar Housing Finance stood at ₹544.8 crore during FY23 which grew 22% compared to ₹444.9 Crore in FY22. The net interest income at ₹1244 Crore grew 28.6% over FY22.

During the first 6 months ending September'2023 net profit at ₹343.61 crore grew 40% over 2,454.4 during first six months ending September'2022.

7. Aadhar Housing Finance IPO: Peers

Aavas Financiers Limited, Aptus Value Housing Finance India Limited, Home First Finance Company India Limited , India Shelter Finance Corporation are the peer companies of Aadhar Housing Finance IPO.

Also Read- Aadhar Housing Finance IPO: 10 key risks investors should know before subscribing to the issue

8. Aadhar Housing Finance IPO: Registrar, Book running manager

The book running lead managers of the Aadhar Housing Finance IPO are ICICI Securities Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and SBI Capital Markets Limited ,

Kfin Technologies Limited is the registrar for the issue.

9. Aadhar Housing Finance IPO: Allotment and Listing details-

The allotment for Aadhar Housing Finance IPO is likely to be completed in Monday, May 13, 2024.

The Aadhar Housing Finance shares are likely to see listing on Wednesday, May 15, 2024

10. Aadhar Housing Finance IPO: GMP or Grey Market premium

The IPO Grey Market premium for Aadhar Housing Finance stood at +54 according to investorgain.com. This shows that the price of Aadhar Housing Finance shares were trading at a premium of ₹54 in the grey market.

Aadhar Housing Finance shares are expected to list at ₹369 per share, 17.14% higher than the IPO price of ₹315 when the upper end of the IPO pricing range and the current premium on the grey market are taken into account.

A "grey market premium" denotes the willingness of investors to part with more money than the issue price.