Aadhar Housing Finance Ltd.'s initial public offering was subscribed 1.48 times on its the second day, led by demand from employees. The IPO was subscribed 43% on the first day.
The three-day issue by the housing finance company comprises fresh issue of shares worth Rs 1,000 crore and an offer for sale of Rs 2,000 crore by promoters and shareholders, according to the red herring prospectus.
Out of the total fundraise of Rs 3,000 crore, Aadhar Housing Finance intends to use Rs 750 crore to meet future requirements towards lending and other corporate purposes.
Investors can bid for a minimum of 47 equity shares, and in multiples of 47 thereafter. The minimum investment threshold mandated for retail investors is Rs 14,805. The company is offering a discount of Rs 23 per share to its employees. The company's promoter, BCP Topco VII Pte., is expected to sell equity shares worth Rs 2,000 crore.
It has raised Rs 898 crore from anchor investors ahead of its IPO.
Issue Details
Issue opens: May 8.
Issue closes: May 10.
Issue price: Rs 300–315 per share.
Fresh issue: Rs 1,000 crore.
Offer for sale: Rs 2,000 crore.
Total issue size: Rs 3,000 crore.
Listing: BSE and NSE.
Lot size: 47 shares.
Business
The company, which commenced its operations in February 2011 as Aadhar Housing Finance, had a capital adequacy ratio of 39.7% as on Dec. 31, 2023. This is well above the RBI's minimum capital requirement for housing finance companies of 15%. The company's tier-I capital stood at 38.9%.
The net worth of the company was Rs 4,249 crore at the end of December quarter. Aadhar Housing Finance focusses on low-income housing segment, where the ticket size is less than Rs 15 lakh and offers mortgage-related loan products in tier-4 and tier-5 towns across the country.
Subscription Status: Day 2
The IPO has been subscribed 1.48 times as of 5 p.m. on Thursday.
Institutional investors: 2.05 times.
Non-institutional investors: 1.94 times
Retail investors: 0.94 times or 94%
Employee Reserved: 3.59 times.
Watch The IPO Adda Here
RECOMMENDED FOR YOU
POPULAR