Aadhar Housing Finance IPO sets price band at ₹300-315 per share

2 May 2024 , 08:22 AM

Aadhar Housing Finance, a subsidiary of Blackstone Group, has announced the pricing range for its initial public offering (IPO) at ₹300-315 per share, totaling ₹3,000 Crore.

The IPO subscription period will run from May 8 to May 10, with the anchor book opening on May 7. Finalization of the basis of allotment is scheduled for May 13, followed by the initiation of refunds on May 14. The company aims to list on stock exchanges on May 15.

This IPO comprises a mix of fresh issue shares worth ₹1,000 Crore and an offer-for-sale (OFS) of ₹2,000 Crore by promoter BCP Topco. At the upper end of the price band, the valuation of the company exceeds ₹13,000 Crore.

BCP Topco VII Pte, an affiliate of Blackstone Group Inc., currently holds a 98.72% stake in Aadhar Housing Finance. The remaining shares are held by public shareholders, with ICICI Bank owning a 1.18% stake.

Out of the net proceeds from the fresh issue, ₹750 Crore will be utilized for future capital requirements to support lending activities, while the remaining funds will be allocated for general corporate purposes.

Aadhar Housing Finance is mandated to maintain a minimum capital adequacy ratio of not less than 15%, comprising Tier I and Tier II capital, with Tier-I capital not falling below 10% at any time.

As of December 2023, its capital risk-weighted adjusted ratio (CRWAR) stood at 39.7%, with Tier-I capital at 38.9%, compared to 44.9% in December 2022.

The Bengaluru-based housing finance company, with 487 branches across 20 states in India, has exhibited strong financial performance. For FY23, net profit grew by 22.5% year-on-year to ₹544.8 Crore, while net interest income increased by 28.6% to ₹1,244.3 Crore, accompanied by a net interest margin (NIM) expansion of 110 bps to 8%.

In the nine-month period ending December FY24 (9MFY24), net profit surged by 35.6% to ₹547.9 Crore, with net interest income rising nearly 30% to ₹1,170.4 Crore and NIM expanding 100 bps to 9%.

Disbursements during 9MFY24 totaled ₹4,904 Crore, marking a growth of 24.3% over 9MFY23, while FY23 disbursements increased by 48% to ₹5,902.6 Crore compared to FY22.