With its shares listing flat on the National Stock Exchange (NSE), Aadhar Housing Finance made a lackluster start on the stock markets on Wednesday.
A day earlier, the shares were trading at a Grey Market Premium (GMP) of Rs 48-50, indicating a 15% gain, therefore the opening price of Rs 315 was below expectations.
The shares debuted on the Bombay shares Exchange (BSE) at Rs 314.30, indicating a 0.22% markdown from its issue price.
The pricing range for the IPO was set at Rs 300–315 per share.
The low-income housing market is expanding, according to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., but investors may be looking for additional information regarding Aadhar's competitive advantage and long-term growth plan because the market is competitive.
Even though the initial public offering (IPO) was significantly oversubscribed 27 times, the unimpressive listing raises concerns about investor mood and prospects going forward. Long-term investors may anticipate development because of the company's robust financials, leading position in the market, and wide branch network, according to Nyati.
Details of the Aadhar Housing Finance IPO
A total of 26.76 times were subscribed to the Aadhar Housing Finance IPO. 2.58 subscribers in the retail category, 76.42 subscribers in the Qualified Institutional Buyer (QIB) category, and 17.33 subscribers in the Non-Institutional Investor (NII) category subscribed to the public issue.
ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, and SBI Capital Markets Limited are the book running lead managers for the Aadhar Housing Finance IPO.
The net proceeds from the initial public offering (IPO) will be used by the firm for general corporate purposes and to cover future capital requirements for lending activities.
Aadhar house financing Limited was founded in 2010 with the intention of serving lower-class consumers by offering house financing options.
With revenue rising by 18.22% and profit after tax (PAT) rising by 22.22% during the fiscal years ending March 31, 2023, and March 31, 2022, Aadhar Housing Finance Limited has demonstrated encouraging progress financially.
