Aadhar Housing Finance IPO - Investment Rationale, Issue Details, Valuation, Key Risks And More: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Aadhar Housing Finance Ltd. will launch its initial public offering today and the subscription closes on May 10. The housing finance company has fixed a price band in the range of Rs 300 - 315. The Rs 3,000 crore IPO comprises of fresh issue of 3.17 crore equity shares, totaling to Rs 1,000 crore, and an offer for sale component of 6.35 crore shares, amounting to Rs 2,000 crore..Primary objective of the issue: Augmenting equity capital base to meet future capital requirements towards onward lending and general corporate purpose..Valuation: Affordable Housing Finance players have managed to maintain/ improve their return profiles through higher yields, lower cost of funds and well managed asset quality. Continued branch expansion in existing and newer geographies coupled with government focus would continue to support their growth. Aadhar Housing Finance is a bet on low ticket size affordable housing segment. Given the current size of Aadhar Housing Finance, the company is well positioned to capture the huge untapped opportunity in <Rs 1.5 million ticket size segment, via deeper penetration in new geographies. In addition, experienced management team with strong track record along with backing of Blackstone boost confidence. At the upper end of the price band, the issue is valued at ~2.5 times December 2023 book value (including capital raise) with return on asset of ~4% and return on equity of ~18%, which looks attractive. Hence, we recommend investors to subscribe this issue..Click on the attachment to read the full IPO report:.Aadhar Housing Finance IPO: All You Need To Know.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aadhar Housing Finance IPO - Investment Rationale, Issue Details, Valuation, Key Risks And More: Systematix

The Rs 3,000 crore Ipo opens for subscription today and closes on May 10, with a fixed price band of Rs 300-315.

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Aadhar Housing Finance IPO - Investment Rationale, Issue Details, Valuation, Key Risks And More: Systematix

The Rs 3,000 crore Ipo opens for subscription today and closes on May 10, with a fixed price band of Rs 300-315.

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