Aadhar Housing Finance’s initial public offering, which is backed by private equity giant Blackstone, garnered 25.49 times subscription on Friday, May 10, the last day of the share sale. The segment for qualified institutional buyers (QIBs) received 72.78 times more subscriptions than the portion for non-institutional investors. The Retail Individual Investor (RII) quota drew 2.46 times the number of subscribers.
Also Read: Aadhar Housing Finance IPO allotment out; latest GMP, 4 steps to check allotment status
The subscription period for the Aadhar Housing Finance IPO closed on Friday, May 10. The company’s initial public offering price bandis set at ₹300 to ₹315 per share. On Tuesday, May 7, the Aadhar Housing Finance IPO raised Rs. 898 crore from anchor investors. The minimum bid is 47 shares, and bids can be placed in multiples of 47.
The Aadhar Housing Finance IPO allotted 35% of the issue size to retail investors, 15% to non-institutional investors (NIIs), and 50% to eligible institutional purchasers. Employees of the company were entitled for a discount of ₹23 per share.
Aadhar Housing Finance Limited is a housing finance firm that caters to the lower income sector. The sales offices of the deep impact branches are aimed at clients in India’s tier 4 and tier 5 towns. As of September 30, 2023, the firm had enlisted 12,221 Aadhar Mitras, who earn referral fees for originating loans for consumers. The organisation offers a wide range of mortgage financing options for residential and commercial property purchases and development, as well as home remodelling and expansion.
According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, despite stiff competition in the low-income housing segment, Aadhar Housing Finance received a decent subscription demand mainly on the back of its high focus in the low-income housing segment which is expected to grow the fastest sub-segment within the housing finance industry. Considering reasonable valuations, we expect a decent ~10-15% listing gain against the issue price of ₹315 per share.
“Decent listing is justified as Aadhar Housing Finance has maintained reasonable asset quality and healthy return ratios. We believe that the affordable low income housing segment is poised for continued growth driven government initiatives such as housing for all and infrastructure status for affordable housing,” said Tapse.
Also Read: Aadhar Housing Finance IPO day 3: GMP, subscription status to review. Apply or not?
View Full Image
Let’s check what does Aadhar Housing Finance IPO GMP today signal ahead of listing.
Aadhar Housing Finance IPO GMP is +47. This indicates Aadhar Housing Finance share price were trading at a premium of ₹47 in the grey market, according to investorgain.com.
When the upper end of the IPO pricing range and the current grey market premium are included, Aadhar Housing Finance shares are expected to list for ₹362 per share, 14.92% more than the IPO price of ₹315.
Based on the previous 15 sessions of grey market activity, the current GMP ( ₹47) is trending downward. According to analysts at investorgain.com, the lowest GMP is ₹0, and the maximum GMP is ₹130.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Aadhar Housing Finance IPO details
Aadhar Housing Finance’s ₹3,000 crore initial public offering consists of an OFS (offer for sale) by promoter BCP Topco VII Pte Ltd, a Blackstone Group affiliate, for ₹2,000 crore and a fresh issue of equity shares valued at ₹1,000 crore.
The OFS’s promoter, BCP Topco VII Pte, will sell its stake. BCP Topco, the promoter and affiliate of Blackstone funds, now owns 98.7% of the pre-offer issued, subscribed, and paid-up equity share capital.
The firm intends to fulfill future capital requirements for more lending as well as use the net proceeds for general corporate operations.
SBI Capital Markets Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, and Citigroup Global Markets India Private Limited are the lead managers for the book running. Kfin Technologies Limited is serving as the registrarfor this issue.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
Published: 14 May 2024, 03:28 PM IST