An HFC focused on the low-income housing segment in India, Aadhar Housing Finance Limited has received final observations from SEBI for their proposed IPO.
The company has planned to raise around INR 5,000 crore through the public issue, wherein, it had submitted its draft papers in February this year.
If we look back to January 2021, Aadhar Housing submitted draft papers to Sebi and received approval from the regulator in May 2022. WIth this, the company was allowed to raise slightly above ₹7,000 crore. However, it opted not to proceed with the desired plans.
Alongside a ₹4,000 crore offer for sale, the new issue plan includes a new equity offering totaling ₹1,000 crore. Furthermore, promoter BCP Topco VII Pte will divest its stake within the offer for sale (OFS).
BCP Topco, which is the promoter and also an affiliate of funds managed by Blackstone, currently possess 98.7 percent of the pre-offer issued, subscribed, and paid-up equity share capital. With this, the company stands to benefit by leveraging the resources, relationships, and expertise of Blackstone.
Going forward, Aadhar Housing intends to allocate the net proceeds for meeting future capital needs pertaining to onward lending and general corporate objectives.
Furthermore, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loansAHFL is a retail-focused HFC focused on the low income housing segment. Here, the average ticket size of their loans was INR 0.9 million with an average loan-to-value of 57.6 percent and 58.1 percent, as of September 30, 2022 and September 30, 2023, respectively.
If we talk about the organization’s offerings, it provides various mortgage-related loan products, encompassing residential property purchase and construction loans, home improvement and extension loans, as well as loans for commercial property construction and acquisition. Today, it has been successfully operating through 471 branches and 91 sales offices.
And the entities who are serving as the book running lead managers for the issue includes Kotak Mahindra Capital, ICICI Securities, Citigroup Global Markets, Nomura Financial Advisory and Securities (India), and SBI Capital.
