Leading affordable housing finance company Aadhar Housing Finance has filed its draft papers with market regulator Sebi to raise around Rs 5,000 crore through an IPO.
The issue comprises a fresh equity issue of Rs 1,000 crore and an offer for sale (OFS) 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, currently 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.
The company proposes to utilise the net proceeds towards the following to meet future capital requirements towards onward lending and general corporate purposes.
The company is a housing finance company focused on the low-income housing segment, with a ticket size of 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.
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