Aadhar Housing Finance Shares End At 5.8% Premium Over IPO Price

The stock of Aadhar Housing Finance Ltd. closed on the BSE on Wednesday at Rs 332.5 apiece, a premium of 5.79% over its issue price of Rs 315 per share. On the National Stock Exchange, the stock closed at Rs 332.2 apiece, a premium of 5.4%.

Given the current strong earnings metrics, the housing finance company does not see any reason why the growth cannot be sustained, Chief Executive Officer Rishi Anand said.

The demand for the products is huge, with the current margin at about 9%. The management is comfortable at a margin between 8.5% and 9% and sustaining this is not an issue, he said.

The company's focus is shifting towards the self-employed rather than salaried segment, Anand said.

The Rs 3,000-crore initial public offering by the housing finance company comprised a fresh issue of shares worth Rs 1,000 crore and an offer for sale of Rs 2,000 crore by promoters and shareholders.

The IPO was subscribed 25.49 times on the third and final day, led by institutional investors (72.78 times), followed by non-institutional investors (16.50 times) and employee reserved (6.52 times).

From the total issue, Aadhar Housing Finance will use Rs 750 crore to meet future requirements towards lending and other corporate purposes.