Aadhar Housing Finance IPO | Details, Timeline, Price, GMP
Aadhar Housing Finance Limited
Aadhar Housing Finance IPO Details
IPO Open
8 May 2024
IPO Close
8 May 2024
Price Band
₹300 – ₹315
Issue Size
₹3000 Cr
Listing on
BSE, NSE
Min. Lot Size
47
Face value
₹10
GMP
₹60
IPO Timeline
IPO Open
8 May 2024
IPO Close
10 May 2024
Allotment
13 May 2024
Refund initiation
14 May 2024
Demat transfer
14 May 2024
Listing
15 May 2024
Key Performance Indicators
Debt/Equity
3.1
P/E
22.8
EPS
₹13.81
ROE
18.4%
RoNW
12.9%
Sector
Housing Finance
About Aadhar Housing Finance Limited
Aadhaar Housing Finance, established in 2010, caters to the housing finance needs of various income groups in India. While initially focusing on low-income segments, after its merger with DHFL Vysya in 2017, it now offers products across a wider income spectrum.
Their core business lies in providing home loans for purchase, construction, and extension of residential properties.
Aadhaar Housing Finance takes pride in being one of the leading affordable housing finance companies in India.
They boast a wide network of over 471 branches across the country, reaching a large customer base. Their loan products cater to individuals with monthly incomes ranging from Rs. 5,000 to Rs. 50,000 and above.
It’s important to note that publicly available information on Aadhaar Housing Finance doesn’t explicitly mention the founding individuals or promoters.
However, their website highlights their mission of empowering underserved populations to achieve homeownership. They have received recognition for their work in the affordable housing sector, including awards from The Outlook Money Awards.
About Aadhar Housing Finance IPO
Aadhaar Housing Finance’s IPO opens May 8th and closes May 10th, offering shares between ₹300 and ₹315. With a minimum investment of ₹14,850, the IPO aims to raise ₹3,000 crore through a mix of fresh issuance and existing shareholder sales (OFS). ICICI Securities, Citigroup, Kotak Mahindra, Nomura, and SBI Capital Markets manage the offering, with Kfin Technologies Limited as the registrar. Listings are expected on the BSE and NSE around May 15th.
Issue Details:
- Price Band: ₹300 – ₹315 per share
- Face Value: ₹10 per share
- Issue Size: ₹3,000 Crore
- Fresh Issue: ₹1,000 Crore (3.17 crore equity shares)
- Offer for Sale (OFS): ₹2,000 Crore (6.35 crore equity shares)
- Minimum Lot Size: 47 Shares
Investment Details:
- Minimum Investment: ₹14,850 (47 shares * ₹315)
Issue Type: Main Board IPO
IPO Timeline:
- Subscription Dates: May 8, 2024 – May 10, 2024
- Allotment Finalization: Expected May 13, 2024
- Listing Date (Tentative): May 15, 2024 (on BSE & NSE)
Registrar & BRLMs:
- Registrar: Kfin Technologies Limited
- Book Running Lead Managers (BRLMs):
- ICICI Securities Limited
- Citigroup Global Markets India Private Limited
- Kotak Mahindra Capital Company Limited
- Nomura Financial Advisory And Securities (India) Pvt Ltd
- SBI Capital Markets Limited
Industry Overview
India faces a massive housing shortage, particularly for low and middle-income groups. This presents a significant opportunity for affordable housing finance companies like Aadhaar Housing Finance. Government initiatives like Pradhan Mantri Awas Yojana (PMAY) and Credit Linked Subsidy Scheme (CLSS) aim to bridge this gap by providing interest rate subsidies and easier loan access.
Market Dynamics:
- Growth Drivers: Urbanization, rising incomes, and government push for affordable housing are key growth drivers.
- Increased Competition: Public and private players are vying for market share, leading to innovative products and competitive interest rates.
- Technology Adoption: Fintech and digital lending platforms are making financing faster and more accessible, especially in rural areas.
Challenges and Risks:
- High NPA (Non-Performing Assets): few borrowers may struggle with repayments, impacting lender profitability.
- Real Estate Fluctuations: Market downturns can affect property valuations and loan security.
- Regulatory Changes: Government regulations and policy changes can impact the sector’s functioning.
Key Players:
- Established players like HDFC, LIC Housing Finance, and SBI dominate the market.
- New-age fintech companies and housing finance companies like Aadhaar are gaining traction with innovative models.
Future Outlook:
The affordable housing finance sector in India is poised for continued growth, driven by the vast unmet demand and supportive government policies. However, managing NPAs and adapting to regulatory changes will be crucial for success.
Peer Analysis
Here’s an in-depth analysis comparing Aadhaar Housing Finance Limited (AHFL) with its key competitors across key parameters:
Market Cap (as of May 7, 2024):
- AHFL (Not Public Yet – IPO upcoming)
- HDFC: ₹4,25,000 Crore
- LIC Housing Finance: ₹2,10,000 Crore
- SBI Cards: ₹75,000 Crore
- Greaves Cotton: ₹12,000 Crore
- Repco Home Finance: ₹18,000 Crore
Loan Portfolio (as of Dec 2023):
- AHFL: ₹12,000 Crore (estimated)
- HDFC: ₹8,20,000 Crore
- LIC Housing Finance: ₹3,50,000 Crore
- SBI Cards: ₹30,000 Crore
- Greaves Finance: ₹5,000 Crore (estimated)
- Repco Home Finance: ₹25,000 Crore
NPA Rate (as of Dec 2023):
- AHFL: Data not available
- HDFC: 1.8%
- LIC Housing Finance: 2.1%
- SBI Cards: 2.5%
- Greaves Finance: 3.2% (estimated)
- Repco Home Finance: 2.8%
Branches Network (as of Dec 2023):
- AHFL: 471 Branches
- HDFC: 5,500 Branches
- LIC Housing Finance: 2,700 Branches
- SBI Cards (focuses on credit cards, limited branch network for housing loans)
- Greaves Finance: 250 Branches (estimated)
- Repco Home Finance: 1,100 Branches
Core Target Customers:
- AHFL: Low & Middle Income, Affordable Housing Segment
- HDFC: Wide range, from salaried individuals to high net-worth individuals
- LIC Housing Finance: Salaried individuals, pensioners (backed by LIC)
- SBI Cards: Primarily focuses on credit cards, housing loan segment caters to existing SBI customers
- Greaves Finance: Rural & Semi-Urban Markets, Focus on Two-Wheeler Owners
- Repco Home Finance: Government Employees, Public Sector Undertakings
Loan Disbursal Rate (2023):
- Data not readily available for all companies. Public data often focuses on loan growth year-over-year.
Average Loan Ticket Size:
- AHFL: ₹8.5 Lakhs (as of Sep 2020)
- HDFC: ₹22 Lakhs (estimated)
- LIC Housing Finance: ₹20 Lakhs (estimated)
- SBI Cards: Not applicable (focuses on credit cards)
- Greaves Finance: ₹5 Lakhs (estimated)
- Repco Home Finance: ₹12 Lakhs (estimated)
Aadhar Housing Finance IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Aadhar Housing Finance IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 47 | ₹14,805 |
| Retail (Max) | 13 | 611 | ₹192,465 |
| S-HNI (Min) | 14 | 658 | ₹207,270 |
| S-HNI (Max) | 67 | 3,149 | ₹991,935 |
| B-HNI (Min) | 68 | 3,196 | ₹1,006,740 |
Financials of Aadhar Housing Finance
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 16,617.87 | 14,375.81 | 13,630.33 |
| Revenue | 2,043.52 | 1,728.56 | 1,575.55 |
| Profit After Tax | 545.34 | 446.2 | 340.46 |
| Net Worth | 3,697.60 | 3,146.63 | 2,692.76 |
| Total Borrowing | 12,153.45 | 10,674.59 | 10,374.47 |
- Assets: Assets grew by 15.6% year-over-year (YoY) from Mar 2022 to Mar 2023, indicating expansion of their loan portfolio and overall business.
- Revenue: Revenue experienced a 18.2% YoY increase, suggesting growth in loan disbursal and income generation.
- Profit After Tax (PAT): PAT witnessed a significant jump of 22.2% YoY, reflecting improved profitability.
- Net Worth: Net worth, representing shareholder equity, grew by 17.6% YoY, indicating a healthy financial position.
- Total Borrowing: Total borrowings increased by 13.8% YoY, which is likely used to fund the asset and loan portfolio growth.
Objective of Aadhar Housing Finance IPO
Aadhaar Housing Finance Limited aims to use the net proceeds from the IPO for the following objectives:
- Funding onward lending: A significant portion will be allocated to meet future capital requirements for disbursing new loans. This will allow them to expand their loan portfolio and reach a wider customer base.
- General corporate purposes: Some proceeds can be used for various general corporate purposes. This might include strategic initiatives like:
- Expanding their branch network to improve accessibility.
- Investing in information technology to improve efficiency.
- Meeting operating expenses and addressing unforeseen contingencies.
Promoter Share Holding Pattern
Aadhaar Housing Finance Shareholding (Pre-IPO):
- Blackstone (via BCP Topco): 98.72% (majority shareholder, Singapore-based private company)
- ICICI Bank Limited: 1.18% (minority shareholder)
FAQ about Aadhar Housing Finance IPO
₹300 – ₹315 per share
As of today (May 8th, 2024), the GMP for Aadhar Housing Finance IPO is around ₹60 per share.
Aadhar Housing Finance IPO listing date is May 15th, 2024 on BSE and NSE.
Aadhar Housing Finance IPO opens on May 8th, 2024 and closes on May 10th, 2024.
Aadhar Housing Finance IPO price band is set between ₹300 and ₹315 per share.
The minimum lot size for the Aadhar Housing Finance IPO is 47 shares.
The minimum investment amount required is ₹14,805 (47 shares * ₹315 per share).
The allotment of shares for the Aadhar Housing Finance IPO is expected to be finalized on May 13th, 2024.
After the allotment date, you can check the application status with the registrar (Kfin Technologies Limited).
Blackstone (via BCP Topco): 98.72% (Singapore-based private company)
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- Debt/Equity Ratio: 3.1
- P/E Ratio: 22.8
- EPS (Earnings Per Share): ₹13.81
- ROE (Return on Equity): 18.4%
- RoNW (Return on Net Worth): 12.9%
The company operates in the affordable housing finance sector in India, which has a high demand but faces challenges like NPAs (Non-Performing Assets) and real estate fluctuations.
- Established players: HDFC, LIC Housing Finance, SBI Cards
- New-age players: Repco Home Finance (focuses on government employees)
Aadhar Housing Finance IPO Subscription Status
| Category | Subscription Times |
|---|---|
| Qualified Institutional Buyers | 115.97x |
| Retail Individual Investor | 69.67x |
| Non-Instituional Investor | 66.51x |
| Others | 29.21x |
| Total | 93.52x |
