Aadhar Housing Eyes 'Housing For All' Gains, Shares Hit Record
Rishi Anand, the Managing Director of Aadhar Housing Finance, informed NDTV Profit that the Pradhan Mantri Awas Yojana scheme could potentially announce three to four crore houses.
Shares of Aadhar Housing Finance Ltd. hit an all-time high on Monday after Prime Minister Narendra Modi reiterated his commitment to providing housing to the underprivileged.
The Prime Minister, during his speech at the Parliament on Friday, highlighted that central to his agenda is a commitment to provide housing for the underprivileged, with a target of constructing four crore houses for those in need.
Rishi Anand, the Managing Director of Aadhar Housing Finance, informed NDTV Profit that the Pradhan Mantri Awas Yojana scheme could potentially announce three to four crore houses. Over the past 10 years, the approval of three crore houses has led to the commissioning of approximately 1.5 crore houses, he said.
When the scheme closed in March 2022, the company recorded a Rs 700 crore interest subsidy out of their total disbursements of Rs 7,000 crore. “Three to four percent of our disbursements have been subsidised. Any subsidy coming to the consumer or the end user helps improve the asset quality,” said Anand.
“Only in the last year did we receive 10% of the subsidy against the total disbursements, but on average it’s 4 to 5%,” said Anand. But following the interim budget announcement and the finance minister mentioning the expansion of this scheme due to its popularity, the MD expects the percentage of disbursements to go up.
"But it is not just the housing or housing finance sector that is going to benefit, but the entire ecosystem,” he said. The expectation is that financiers, developers, the cement industry, the steel industry, and the entire ecosystem will benefit from the Prime Minister's announcement. There will also be the benefit of employment generation, said Anand and therefore, “it would not be fair to put a number on what this can add to the economy.”
Shares of Aadhar Housing rose as much as 8.7% during the day to Rs 398 apiece on the NSE. It was trading 6.23% higher at Rs 388 apiece, compared to a 0.17% advance in the benchmark Nifty 50 as of 12:50 p.m.
The stock has risen 17.92% since its listing day, May 15. The total traded volume so far in the day stood at 2.5 times its 30-day average. The relative strength index was at 70.76, indicating that the stock may be overbought. There are no analysts currently tracking the company.
