Aadhar Housing Finance IPO subscribed 1.34 times so far on Day2

9 May 2024 , 03:56 PM

With subscription rates reaching 134%, investor interest in Aadhar Housing Finance’s initial public offering (IPO), supported by Blackstone, increased on the second day of bidding. In response to the 7 Crore equity share sale, bids for 9.37 Crore shares have been flooding in.

Non-institutional investors placed bids for 157% of the shares allotted to them. Qualified institutional buyers (QIBs) placed bids for 196% of their quota, with retail investors subscribing for 87% of their quota.

The initial public offering (IPO) consists of a new share offering valued at ₹1,000 Crore and an offer for sale (OFS) by promoter BCP Topco VII Pte, a Blackstone Group affiliate, valued at ₹2,000 Crore. At the top end of the scale, the worth of the company is more than ₹13,000 Crore. The offering is open to investors in the price range of ₹300–315 per share, with the bidding closing on May 10.

With an emphasis on small-ticket loans, Aadhar Housing Finance specialises in providing mortgage loans to the low-income housing sector. The company’s average loan size as of December 2023 was ₹10 lakh, with an average loan-to-value ratio of 58.3%.

During the first nine months of the company’s fiscal year 2024, salaried individuals made up 57.2% of the Assets Under Management (AUM) segment, while the self-employed segment accounted for 42.8%.

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