Aadhar Housing Finance IPO: Subscription Details on Day 2

9 May 2024 , 11:41 AM

The Aadhar Housing Finance IPO subscribed 0.67 times on day 2 so far. At the time of writing the retail investors subscribed to 0.62 times their reserved portion, followed by non-institutional investors at 0.95 times. Qualified institutional buyers (QIBs) subscribing to 0.53 times.

The employees’ quota has been fully subscribed on day 1 and oversubscribed 2.60 times so far on day 2.

The subscription period started on May 8 and ends on May 10, with a price band of ₹300 to ₹315 per share. The IPO raised ₹898 Crore from anchor investors on May 7.

Retail investors are allocated 35% of the issue size, followed by non-institutional investors (15%) and QIBs (50%). Employees are eligible for a ₹23 per share discount.

The company was purchased from the DHFL group between 2016 and 2017 and focuses on low-income housing, with an EPS of ₹13.8 for the year ending March 2023.

The NAV is ₹107.6 as of December 23, with a price-to-book ratio of 2.92 at the top of the range. The post-issue NAV would be ₹123.07, with a price-to-book ratio of 2.56 times.

The IPO consists of an offer for sale (OFS) by promoter BCP Topco VII Pte Ltd for ₹2,000 Crore and a fresh issue of equity shares worth ₹1,000 Crore. The firm plans to use the proceeds for lending and 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, with Kfin Technologies Limited serving as the registrar.

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