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Business News/ Markets / Ipo/  Aadhar Housing Finance IPO to debut on the bourses tomorrow; here's what GMP indicates ahead of listing
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Aadhar Housing Finance IPO to debut on the bourses tomorrow; here's what GMP indicates ahead of listing

Aadhar Housing Finance IPO scheduled for listing on May 15. Retail investors allotted 35% of the issue size, with minimum bid of 47 shares. Company has enlisted 12,221 Aadhar Mitras as of September 30, 2023. Aadhar Housing Finance IPO GMP is +47.

Aadhar Housing Finance IPO listing date has been scheduled for tomorrow (Wednesday, May 15). (https://aadharhousing.com/)Premium
Aadhar Housing Finance IPO listing date has been scheduled for tomorrow (Wednesday, May 15). (https://aadharhousing.com/)

Aadhar Housing Finance IPO listing date has been scheduled for tomorrow (Wednesday, May 15). Aadhar Housing Finance IPO allotment has been finalised. Aadhar Housing Finance IPO allotment date was scheduled for Monday, May 13. Shares allotted to individuals will be credited to their demat accounts today, Tuesday, May 14. Refunds for individuals who have yet to get their shares will also be performed today. Kfin Technologies Ltd is the registrar of Aadhar Housing Finance IPO.

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?

Aadhar Housing Finance IPO details.
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Aadhar Housing Finance IPO details.

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.

Also Read: Aadhar Housing Finance IPO: From financials to key risks, here are 10 things to know from RHP before investing

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.

Also Read: Aadhar Housing Finance IPO: Issue subscribed 1.48 times on day 2, retail portion booked 94%. Check GMP, other details.

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.

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Published: 14 May 2024, 03:28 PM IST
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