Aadhar Housing Finance IPO: Price band set at ₹300-315 per equity share

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Aadhar Housing Finance Ltd (AHFL) has set a price band fixed at ₹300 to ₹315 per equity share of face value of ₹10 each for its upcoming ₹3,000 crore initial public offer (IPO). The IPO opens on May 8 and closes on May 10.

AHFL is focused on the low income housing segment (average ticket size of ₹10 lakh).

The IPO comprises fresh issue of equity shares aggregating up to ₹1,000 crore and an offer an offer for sale (OFS) of equity shares aggregating up to ₹2,000 crore.

The selling shareholder in the OFS is BCP Topco VII Pte Ltd, which is an affiliate of funds managed and/or advised by affiliates of Blackstone Group Inc. Its weighted average cost of acquisition per AHFL equity share is ₹80.54.

BCP Topco currently holds 98.72 per cent of the housing finance company’s (HFC) pre-offer issued, subscribed and paid-up equity share capital. ICICI Bank holds 1.18 per cent stake in the HFC.

AHFL said bids can be made for a minimum of 47 equity shares and in multiples of 47 equity shares thereafter.

The company intends to use the net proceeds from the fresh issue to meet future capital requirements (₹750 crore) towards onward lending and general corporate purposes.

9M net up

Net profit in the nine months ended December 31, 2023, rose about 36 per cent year-on-year to ₹548 crore (₹404 crore in the year ago period). As on December-end 2023, Gross assets under management/retail AUM rose about 20 per cent to ₹19,865 crore (₹16,566 crore as on December-end 2022).

Gross non-performing assets (NPA) to retail AUM and net NPA to retail AUM stood at 1.4 per cent and 1 per cent, respectively, as on December-end 2023.

Rishi Anand, MD & CEO, AHFL, said the IPO is a significant milestone in the company’s journey towards empowering individuals and families with the keys to their own houses.

Mukesh Mehta, Senior Managing Director, 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.”