Aadhaar Housing IPO stuck on SEBI approval

Blackstone-backed BCP Topco holds 98.72% stake in Aadhaar Housing. The US investment firm acquired stake in June 2019 from Dewan Housing Finance Company Ltd and Wadhawan Group for approx. ₹2,200 crores.

Following the acquisition, Blackstone has invested ₹1,300 crore more in the company.

Usually, the Securities and Exchange Board of India (SEBI) approves the draft paper for an Initial Public Offering (IPO) in 2-3 months. According to Sebi’s website, it is awaiting the response of any other regulatory authority. SEBI did not disclose the information sought from other regulators. It did not even name the regulator.

Blackstone did not respond to email queries.

Aadhar Housing files draft IPO papers on Jan 24 to raise total ₹7,300 crores. The company plans to issue new shares ₹1,500 crore through IPO, while Blackstone will sell existing shares ₹5,800 crore, as per the draft prospectus. It did not disclose the size of the stake that Blackstone plans to sell.

Aadhar Housing said it will use the proceeds from the sale of new shares to boost its Tier I capital base to meet future capital requirements. As on 30 September 2020, the CRAR Tier I capital of Aadhaar was 45.87%.

Lender reported net profit ₹340 crore in FY11, up from ₹189.38 crore in the previous year. total income increased ₹from 1,550 crore ₹1,372 crore during the same period, according to a July 6 report by credit rating agency Care Ratings. Net NPAs stood at 0.81% in FY21 as against 0.78% in the previous year.

CARE confirmed its AA credit rating on Aadhar Housing. “The rating reflects the visible benefits post-acquisition by Blackstone Group LP in the form of capital infusions, visible improvement in lending rates with access to a broader base of banks and financial institutions, as well as helping to overcome negative market views. Collaboration with Dewan Housing Finance Ltd. The ratings take into account AHFL’s substantial capitalization and moderate gearing. The long-term rating draws strength from its solid market and a well-diversified geographic base in the affordable housing finance segment. In addition, a favorable asset quality led by a largely salaried customer base and focus on the retail home loan sector are positive factors driving down the rating.However, their growth will be closely monitored in the near to medium term, Care Ratings said.