Capital markets regulator Sebi has approved the IPO of leading affordable housing finance company Aadhar Housing Finance. The company, which aims to raise around Rs 5,000 crore through the offer, had filed its draft papers in February.
Earlier, Aadhar Housing filed draft papers with Sebi in January 2021 and got the regulator’s nod in May 2022 to raise just over Rs 7,000 crore. But it didn’t proceed with the plans
The revised issue plan comprises a fresh equity issue of Rs 1,000 crore and an offer for sale of Rs 4,000 crore. Under the OFS, promoter BCP Topco VII Pte will offload its stake.
BCP Topco, which is the promoter, and an affiliate of funds managed by Blackstone, holds 98.7% of the pre-offer issued, subscribed and paid-up equity share capital. The company benefits from the resources, relationships and expertise of Blackstone, one of the world’s leading investment firms.
Aadhar Housing proposes to utilise the net proceeds towards the following to meet future capital requirements towards onward lending and general corporate purposes.
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The company is a HFC focused on the low income housing segment, with a ticket size less than Rs 15 lakh. It had the highest AUM and net worth among analyzed peers in six months ended September 2023.
The financier 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. It has an extensive network of 471 branches including 91 sales offices.
According to a peer set analyzed by Crisil, Aadhar Housing Finance had the highest number of live accounts in FY2023. The company mainly services economically weaker and low-to-middle income customers.
The average ticket size of the loans was Rs 9 lakh with an average loan-to-value of 57.6% and 58.1%, as of September 30, 2022 and September 30, 2023, respectively.
ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India) and SBI Capital are the book running lead managers to the issue.
