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Business News/ Markets / Stock Markets/  Aadhar Housing Finance IPO listing: Stock makes muted debut, lists at 315 on NSE, same as IPO price
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Aadhar Housing Finance IPO listing: Stock makes muted debut, lists at ₹315 on NSE, same as IPO price

Aadhar Housing Finance IPO made a muted debut on the bourses, listing at ₹315 on NSE and ₹314.30 on BSE. The issue was oversubscribed 26.76 times with strong subscriptions in all categories.

Aadhar Housing Finance IPO listing (https://aadharhousing.com/)Premium
Aadhar Housing Finance IPO listing (https://aadharhousing.com/)

Aadhar Housing Finance IPO listing: Aadhar Housing Finance made a muted debut on the bourses today. The stock listed at 315 on NSE, same as its issue price. Meanwhile, on BSE, the stock listed at 314.30, a discount of 0.22 percent.

The 3,000 crore initial public offering (IPO) of Aadhar Housing Finance was open for subscription between May 8, 2024 - May 10, 2024, with a price band in the range of 300-315. On Tuesday, May 7, the Aadhar Housing Finance IPO raised 898 crore from anchor investors.

Read here: Aadhar Housing IPO: From financials to key risks, here are 10 things to know

The Aadhar Housing Finance IPO allotted 35 percent of the issue size to retail investors, 15 percent to non-institutional investors (NIIs), and 50 percent to eligible institutional purchasers. Employees of the company were entitled for a discount of 23 per share.

Aadhar Housing witnessed strong subscriptions in all categories in the 3 days of bidding. Overall, it was subscribed 26.76 times. Investors bid for 178.65 crore shares as against 6.67 crore on offer. The QIB portion was subscribed the most, 76.42 times followed by the NII category, which was bud 17.33 times. Meanwhile, the employee part was subscribed 6.88 times and the retail portion 2.58 times.

Read here: Aadhar Housing Finance IPO: 10 key risks from RHP to consider before investing

The issue was a combination of a fresh issue of 3.17 crore shares aggregating to 1,000 crore and an offer for sale of 6.35 crore shares aggregating to 2,000 crore by promoter BCP Topco VII Pte Ltd, a Blackstone Group affiliate. BCP Topco owned 98.7 percent of the pre-offer issued, subscribed, and paid-up equity share capital.

The firm has proposed to utilize the net Proceeds from the IPO 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 registrar for this issue.

Read here: Aadhar Housing Finance IPO: Firm mobilises 898 crore from anchor investors

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 earned 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.

Most experts had advised subscribing to the issue as they believed the IPO was fairly priced compared to its peers.

Read here: Aadhar HFL IPO day 3: GMP, subscription status to review. Apply or not?

"Considering the Book Value of 52,492 mn on a post-issue basis, the company is going to list at a P/B of 2.56x with a market cap of Rs. 1,34,348 mn, whereas its peers namely Aptus Value Housing Finance India Limited, Aavas Financiers Limited, Home First Finance Company India Limited, India Shelter Finance Corporation Limited are trading at a P/B of 4.65x, 3.36x, 4.05x, 4.59x. We assign a “Subscribe" rating to this IPO as the company has a seasoned business model with strong resilience through business cycles and robust processes for underwriting, collections, and monitoring asset quality. Also, it is available at a reasonable valuation as compared to its peers," said brokerage house Marwadi Shares and Finance.

Other brokerages including Aditya Birla Ltd, Ashika Research, Canara Bank Securities, Nirmal Bang, and SMIFS, had also given a 'subscribe' tag to the book build issue.

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Published: 15 May 2024, 10:00 AM IST
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