Aadhar Housing Finance is a company offering an exceptional focus on the retail sector of housing finance solutions. They deliver their services to lower and middle-income clients, who require lower mortgage loans. Their business model relies on the specific objective to fulfil their social obligation towards society. Aadhar Housing Finance operates with a financially focused customer-oriented business of providing loans and further believes that their efforts are directed to foster economic development and improvisation of the focused group of customers. They aim at enhancing the standard of living among their customers.
Moreover, the company does not just try to achieve the social objective through their customer-centric business practices, however, they have integrated social objectives in other aspects of their business as well. They have extended their services across semi-urban and rural areas of the country to enable employment generation in backward locations. The company has been promoted by BCP TOPCO VII PTE. LTD. Also, the lead managers for this IPO are Citigroup Global Markets India Private Ltd, ICICI Securities LTD, SBI Capital Markets Ltd, and Nomura Financial Advisory. The issue has been registered with Kfin Technologies Private Ltd.
The Strength
For the year 2020, the company has manifested a net profit of 189. 38 crores, which shows a 16% hike from the net profit of their previous i.e. 162.37 crores. According to the reports, their total income for the financial year 2019-20 was INR 1, 388.46 crores as compared to its previous year, which was 1,265.63 crore. The company’s expansive network can be summed up into 292 branches as of 30th September 2020.
Throughout the country, their branches are spread around 20 union territories and states comprising over 12,000 locations. The network of their branches is highly dispersed including no state accounting for over 16.2% concerning Gross AUM. The company assures the potency of their diversified approach that allows them to facilitate specific requirement fulfilment for their concerned target market over semi-urban, urban and rural regions across India.
IPO Details
Aadhar Housing Finance is supported by Blackstone and has filed the initial documentation with SEBI, i.e. the regulatory authority for the IPO. Their IPO size is expected to be INR 7,300 crores. The number of shares is yet not confirmed, however, the face value of the equity shares will be Rs 10. The overall money attempted to be acquired through this IPO will be INR 7,300 crore. As per the latest information, the IPO will consist of a fresh issue of shares with a value of 1,500 crores at an offer of the sale worth INR 5,800 crore by their promoters.
The objective of this IPO is to engage the money acquired from a fresh issue of shares towards capital augmentation in order to meet the requirements of capital in the future. Other than that, the company aims to receive the advantages of listing equity shares at the stock exchanges that would facilitate reputation build-up in the financial market of India. The company is currently backed by Blackstone, which has its 97.7% stakes. The buyout incorporates the total stake acquired by supervising shareholders in 2019. Aadhar Housing Finance was initially controlled by Dewan Housing Finance Limited and Wadhawan Global Capital.