Aadhar Housing Finance Ltd, sponsored by private equity firm Blackstone, plans to conduct its Rs 3,000 crore initial public offering (IPO) on May 8. According to the Red Herring Prospectus (RHP), the initial share sale will end on May 10, and bidding for anchor investors will be open for one day on May 7.
The IPO consists of a new issue of equity shares for Rs 1,000 crore and an offer for sale (OFS) of Rs 2,000 crore by promoter BCP Topco VII Pte Ltd, a subsidiary of Blackstone Group Inc.
Currently, BCP Topco controls 98.72 percent of Aadhar Housing Finance, with ICICI Bank owning 1.18 percent.
The company intends to use Rs 750 crore of the additional issue proceeds to cover future capital requirements for onward lending, with a part also being used for general corporate reasons. Earlier this month, Sebi approved Aadhar Housing Finance's IPO.
Aadhar Housing Finance provides a variety of mortgage-related credit products, such as loans for residential property purchase and construction, home improvement and extension loans, and commercial property building and acquisition.
The company is a home finance company that specializes in low-income housing, servicing economically disadvantaged and low-to-middle-income customers who need small-dollar mortgage loans.
As of September 30, 2023, it has 471 branches, 91 of which were sales offices. Blackstone, one of the world's largest investment firms, provides the company with its resources, relationships, and expertise. ICICI Securities, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, and SBI Capital Markets are the book running lead managers for the issuance.
