Aadhar Housing Finance Ltd

About the Company:

Aadhar Housing Finance Ltd offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

Company is the largest Affordable HFC in India in terms of AUM, and are approximately 1.5 times larger than the second largest peer set company based on AUM as on March 31, 2020.

Compared to peers, Aadhar Housing Finance has the largest customer base as on March 31, 2020 and have the highest disbursement for financial year ended March 31, 2020.

Company is an entirely retail-focused affordable housing finance company, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans.

The average ticket size of loans was Rs.8.5 Lakhs, with an average loan-to-value of 56.73%, as of September 30, 2020.

As of September 30, 2020, 64.83% and 35.17% of company’s Gross AUM comprised loans to salaried customers and to self-employed customers, respectively.

As of September 30, 2020, company had a total of 2,088 employees and company’s 100% owned subsidiary has a total of 1,326 employees.



Company’s Branch Network:

Aadhar Housing Finance has an extensive network of 292 branches, as of September 30, 2020.

Company’s branches are spread across 20 states and union territories, operating in approximately 12,000 locations across India, as of September 30, 2020.

Because of the diversified reach company is well positioned to meet the specific needs of our target customers across geographies, in urban, semi-urban and rural areas.

Further, as a result of company’s geographical spread, the top five states in terms of contribution to AUM collectively accounted for 62% of our AUM as of March 31, 2020.



Income-wise split of number of customers: 




From where does Company borrow money to give loans?

Company secures financing from a variety of sources including term loans and working capital facilities; proceeds from loans assigned; proceeds from the issuance of NCDs; refinancing from the NHB; and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic, development financial institutions to meet the capital requirements.

As of September 30, 2020, Company’s Total Borrowings were Rs.9637.9 crores and average cost of borrowings has reduced from 10.09% as of March 31, 2019 to 8.57% as of September 30, 2020.



Company’s Management Team:

Company has a strong, experienced and dedicated management team, with senior management having an average of 25 years’ experience in the financial services industry in India.

Further, board of directors is comprised of a balanced team of independent directors, qualified and experienced personnel, who have extensive knowledge and understanding of the housing finance and banking industries.


Aadhar Mitra Programme:

Since 2018, to further the social objectives and with a view to lowering our cost of acquisition for new loans while continuing to widen the customer reach, company launched the ‘Aadhar Mitra Programme’.

During FY2020, company also launched a new channel called “Digital Aadhar Mitra”, under which company has engaged corporates with large customer bases to identify potential leads for sales teams. In the event a lead results in a loan sanction, company will share a sales commission with these entities.



Competitors in the Business:

Aadhar Housing Finance face competition from other HFCs, NBFCs as well as scheduled commercial banks.

Company competes on the basis of the range of product offerings, interest rates, fees and customer service, as well as for skilled employees, with competitors.

Company’s primary competitors include Aavas Financiers Ltd, Motilal Oswal Home Finance Ltd, Home First Finance Company Ltd and Magma Housing Finance Ltd


Management Team:

  1. Mr. Om Prakash Bhatt (Designation: Non-Executive Chairman and Independent Director)
  2. Mr. Deo Shankar Tripathi (Designation: Managing Director and Chief Executive Officer)





Objectives of the Issue:

Offer for Sale: (Rs.)

  • The Promoter Selling Shareholder will be entitled to the proceeds of the Offer for Sale, net of their proportion of Offer-related expenses and the relevant taxes thereon.Company shall not receive any proceeds from the Offer for Sale.


Fresh Issue: (Rs.)

  • Company proposes to utilise the Net Proceeds towards augmenting its capital base to meet the future capital requirements.



Positives for the Company:

Largest affordable housing finance company with best-in-class metrics in the fastest growing sub-segment of the Indian mortgage market.

  • Aadhar Housing Finance is the largest affordable housing finance company in India in terms of AUM, as of March 31, 2020 and is approximately 1.5 times larger than the second largest peer set company based on AUM as on March 31, 2020.



Extensive branch network, geographical penetration and sales channels which contribute significantly to loan sourcing and servicing.

  • As on September 30, 2020, company had 292 branches across India covering 20 states of India. This network of branches is widely dispersed across various states and geographies with 56% of the branches spread across 5 states and the remaining 44% spread across 15 states.



Business through Aadhar Mitra Programme.

  • Company’s presence in rural and semi urban locations across India results in providing employment opportunities for people in these locations. For example, in 2018, company launched a sales channel called ‘Aadhar Mitra’.
  • Aadhar Mitras are people who are in non-allied industries (for example, hardware owners, property brokers and building material suppliers) act as lead providers to company’s sales teams. Company has enrolled 7,032 Aadhar Mitras as of September 30, 2020 and provided these people with an alternate source of income (i.e., referral fees for referring loans that are paid out on disbursements to customers sourced by them).



Backing from Blackstone Group Inc.

  • Since June 2019, BCP Topco, which is in turn an affiliate of funds managed by affiliates of Blackstone Group Inc (collectively “Blackstone”), is company’s Promoter and currently holds 98.72% of Aadhar Housing Finance Ltd pre-Offer issued, subscribed and paid-up Equity Share capital.
  • Company benefits from the resources, relationships and expertise of Blackstone, one of the world’s leading investment firms.



Continue to focus on target Customers and grow the Customer base.

  • In FY2020, company’s customers crossed 150,000 accounts and have 165,000+ Live Accounts as on September 30, 2020.
  • A majority of company’s customers are from the economically weaker and low-to-middle income segment of the Indian economy.
  • As of September 30, 2020, 64.83% of company’s customers are salaried individuals and 35.17% are self-employed individuals. According to CRISIL, the housing shortage in India is estimated to increase to 100 million units by 2022.



Financials of the Company:

(in Crores) FY 18 FY 19 FY 20 30th Sept 20
Revenue 815.1 1265.6 1388.4 748.3
Net Profit 114.2 161.8 189.3 156.3

Valuation of Peer Group Companies:


Company Name Face Value EPS PE Ratio RoNW NAV
Aadhar Housing
Finance Ltd
10 5.83 TBA 8.07% 59.48
Aavas Financiers Ltd 10 31.48 61.2 12.66% 267.86


IPO Details:

Details Info
Issue Opens on Coming Soon
Issue Closes on:. Coming Soon
Issue Price Will be Updated
Face Value Will be Updated
Retail Category Allocation Will be Updated
Minimum Lot Will be Updated
Minimum Investment Will be Updated
Issue Constitutes Will be Updated
Issue Size Will be Updated
Market Cap Will be Updated
Listing at NSE & BSE
Equity Shares Offered Will be Updated
Equity Shares Prior to the Issue 39,47,54,970
Equity Shares after the Issue Will be Updated

Also Read : List of Upcoming IPO’s in India.


Important Dates:

Finalization of Basis of Allotment Will be Updated
Initiation of Refunds Will be Updated
Credit of Equity Shares: Will be Updated
Listing Date: Will be Updated


Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 00:00) Shares Offered Day-1 Day-2 Day-3


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
5.83 Will be Updated 8.07% 59.48



Check IPO Allotment Status:

KfinTech Website: http://kfintech/IPO/Allotment_Status

BSE IPO Website: https://www.bseindia.com/IPO/Allotment



Company Contact Info:
Aadhar Housing Finance Ltd
2nd Floor, No. 3, JVT Towers
8th ‘A’ Main Road, S.R. Nagar
Bengaluru 560 027
Karnataka, India
Telephone: +91 22 3950 9900;
E-mail: complianceofficer@aadharhousing.com;
Website: www.aadharhousing.com



IPO Registrar Info:
KFin Technologies Private Limited
Selenium Tower-B, Plot 31& 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
Investor E-mail: einward.ris@kfintech.com
Website: https://www.kfintech.com