Aadhar Housing Finance, a prominent affordable housing finance company in India, saw its shares listed on the stock exchanges on May 15 at INR 314.3 per share, marginally below its issue price of INR 315. Prior to listing, the stock traded at a premium of INR 50 in the unlisted market. Valued at INR 3000 crore, the company's IPO comprised a fresh issue of INR 1000 crore and an offer for sale of INR 2000 crore by Blackstone affiliate BCP Topco. The issue was oversubscribed 26 times, underscoring strong investor demand. Most proceeds will fund future lending while expanding financial inclusion.
Aadhar Housing Finance made its stock market debut on May 15. The shares listed on the exchanges at INR 314.3, a marginal discount of 0.22% from the IPO price of INR 315 per share on the BSE. Prior to the listing, the stock was trading at a premium of INR 50 in the unlisted market.
Aadhar Housing Finance has the highest assets under management in the low-income housing segment, underscoring its strong market position in this space.
The IPO allotment date was May 13. Valued at INR 3,000 crore, the IPO comprised a fresh issue of INR 1,000 crore and an offer for sale of INR 2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of private equity giant Blackstone Group. BCP Topco currently holds a 98.72% stake in Aadhar Housing Finance. The IPO saw strong demand with an oversubscription of 26 times.
Ahead of the IPO, Aadhar Housing Finance raised INR 898 crore from anchor investors by allotting 2.85 crore shares at INR 315 per share. Key anchor investors included Morgan Stanley Asia, Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, and several Indian mutual funds and insurance companies.
The IPO was priced between INR 300-315 per share and opened from May 8-10. Half the issue was reserved for institutional investors, with 35% for retail and 15% for non-institutional buyers. Bids exceeded the issue size 25.49 times on the final day.
Most of the INR 750 crore raised via the fresh issue will be used to fund future lending activities, with the remainder kept for general corporate purposes.
Aadhar Housing Finance Ltd is a prominent affordable housing finance company in India focused on empowering underserved sections of society through home ownership. Established in 2010, the company merged with DHFL Vysya in November 2017 and changed its name to Aadhar Housing Finance Limited. This merger gave Aadhar a pan-India presence serving customers nationwide.
The company provides financing solutions to a diverse range of customers with monthly incomes between INR 5,000 to 50,000 and above. Aadhar aims to fulfill the home financing needs of low-income individuals by enabling them to achieve their dream of a first home. Through comprehensive services and nationwide reach via multiple branches across 20 states, the company strives to empower millions of underserved people by providing access to affordable housing solutions. The organisation offers a wide range of mortgage financing options for residential and commercial property purchases and development, as well as home remodelling and expansion.
Aadhar operates 471 branches and 91 sales offices, catering to low-income segments. For the period ended December 2023, the company clocked revenue from operations of INR 658.5 crore and posted a profit after tax of INR 203.4 crore.
With a strong market position in low-income housing and nationwide operations, Aadhar is well positioned for further growth. By empowering millions with access to home ownership, the company also contributes significantly to India's vision of 'Housing for All'. Going forward, leveraging Blackstone's support, Aadhar Housing Finance will likely continue innovating affordable solutions and scaling up operations to bring the benefits of home financing to even more underserved communities across the country.
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