BackAptus Value Housing Finance IPO: Things to know before you subscribe
Aptus IPO)comprises fresh issue of equity shares aggregating to ₹500 crore and an OFS of up to 6,45,90,695 equity shares
PremiumAptus Value Housing Finance's public issue, with a price band of ₹346-353 per share, will open for public subscription today and conclude on August 12. The initial public offering (IPO) comprises fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 6,45,90,695 equity shares by promoters and existing shareholders.
The company on Monday raised ₹834 crore from anchor investors. The company has decided to allocate 2,36,26,500 equity shares at ₹353 apiece aggregating the transaction size to ₹834 crore, according to a circular uploaded on BSE website.
At the upper end of the price band, the IPO is expected to fetch ₹2,780 crore. The net proceeds from the fresh issue will be utilised towards augmenting the company's tier-1 capital requirements. Aptus grey market premium (GMP) is at ₹22 today, market observers noted.
''Aptus has posted strong growth in both NII and net profits of 46.2% and 54.7% between FY19-FY21. Despite the Covid-19 crisis the company’s asset quality has remained largely stable with GNPA and NNPA largely stable at 0.6% and 0.5% respectively at the end of FY2021. At the higher end of the price band the stock would be trading at P/BV of 8.5x FY21 BVPS of Rs. 41.7 which is in line with Aavas Financers which is a comparable company. Given strong growth prospects, and industry leading return ratios we recommend a SUBSCRIBE rating on the issue,'' Angel Broking said in a note.
Aptus Value Housing is one of the largest housing finance companies in South India in terms of asset under management, as of March 31, 2021 and having the largest branch network in South India among its peers. As on March 2021, the company had a network of 190 branches catering to customers across Tamil Nadu, Puducherry, Andhra Pradesh, Karnataka, and Telangana. The company now intends to expand its branch network in large housing markets in Maharashtra, Odisha and Chhattisgarh.
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