Aadhar Housing Finance IPO 2024: Complete Guide and Analysis

What is Aadhar Housing Finance IPO ?

This is the process through which a private business first makes its shares available to the general public. As a result, the business may raise funds by offering ownership stakes or shares to investors . To put it briefly, it’s the process by which a business goes from being privately held to being mentioned on a stock exchange. Aadhar Housing Finance‘s initial public offering (IPO) will begin on May 8 and end on May 10, with shares priced between ₹300 and ₹315 each. The business has received a amount of ₹898 crore in funding from major investors . Employees get a ₹23 per share discount, while retail investors receive a 35% allocation.

Key Details and Insights into IPO 2024

The Blackstone-backed company’s IPO price range is ₹300 to ₹315 per share. Tuesday, May 7, saw the ₹898 crore Aadhar Housing Finance IPO, which was funded by anchor investors. Bids can be placed for multiples of 47 shares, with a minimum bid of 47 shares. Aadhar Housing Finance Limited is a housing finance company that focuses on low-income demographics. It was founded in 2010.Ten things to consider before you consider taking part in Aadhar Housing Finance’s initial public offering (IPO):

By September 30, 2023, the company had 12,221 Aadhar Mitras listed. These people find loans for their clients in exchange for referral fees. The company offers a range of financing choices for the purchase, development, and renovation of both commercial and residential real estate.

As of September 30, 2023, the company had 91 sales offices and 471 branches across India.

These branches and sales offices are located throughout 20 states and union territories, providing service to almost 10,926 pin codes.

Aavas Financiers Limited (P/E of 28.1), Home First Finance Company India Limited (P/E of 34.9), Aptus Value Housing Finance India Limited (P/E of 31.3), and India Shelter Finance Corporation Limited (P/E of 33.1) are the listed peer group according to Aadhar Housing Finance’s Red Herring Prospectus (RHP).

Financial Performance and Offering Details

Aadhar Housing Finance saw a 22.22% increase in post-tax profit (PAT) and an 18.22% increase in revenue between March 31, 2022, and March 31, 2023.The promoter, BCP Topco VII PTE Limited, is offering shares for sale totaling ₹2,000 crore as part of Aadhar Housing Finance’s ₹3,000 crore initial public offering (IPO). Additionally, a fresh issue of equity shares valued at ₹1,000 crore is being made.The proceeds will be used by the business for general corporate purposes as well as to meet the capital needs in order to make additional loans.

The book running lead managers are SBICAP, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, and Citigroup Global Markets India Private Limited. For the company, KFin Technologies Limited serves as the registrar.

Financial Strength and Market Performance

BP Equities Private Limited asserts that overall development , portfolio performance , asset quality , and stable profitability serve as examples of the company’s and the management team’s capabilities in these times . The next two financial institutions with the highest return on equity in the 2013 fiscal year were Aadhar Housing Finance (14.1%) and Home First Finance (13.5%), with Aadhar Housing Finance having the second-highest rate at 15.9%.

Today’s Aadhar Housing Finance IPO GMPThe IPO GMP for Aadhar Housing Finance is +70. This suggests that the share price of Aadhar Housing Finance was trading at a premium of ₹70 on the grey market, according to Investorgene.com .

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