About the Company:
Aadhar Housing Finance Ltd IS a retail-focused HFC focused on the low income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans.
Company 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.
The average ticket size of company’s loans was Rs.9 lakhs and Rs.10 Lakhs with an average loan-to-value of 57.7% and 58.3%, as of December 31, 2022 and December 31, 2023, respectively.
Company had the highest AUM and net worth among our analyzed peers in FY2021, FY2022, FY2023 and nine months ended December 31, 2022 and December 31, 2023.
In addition, among the peers, Company had the highest number of live accounts in FY2023. In addition, Company has a presence in 20 states and union territories, which is the highest among the peers as of March 31, 2023.
Company’s Promoters:
Since June 2019, BCP Topco, which is our Promoter, and is an affiliate of funds managed and/or advised by affiliates of Blackstone Group Inc, currently holds 98.72% of our 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.
Blackstone’s asset management businesses include investment vehicles focused on real estate, private equity, public debt and equity, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis.
Company’s Branch Network:
Company has an extensive network of 487 branches* including 109 sales offices, as of December 31, 2023. Company’s branches and sales offices spread across 20 states and union territories, operating in approximately 10,926 pin codes across India, as of December 31, 2023.
From where does Company borrow money to give loans?
Company secures financing from a variety of sources including term loans and cash credit/ 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 our capital requirements.
Company’s Key Financial and Operational Metrics: (in millions)
Competition in the Business:
The housing finance industry in India is highly competitive. Company faces competition from other HFCs, NBFCs and scheduled commercial banks on the range of product offerings, interest rates, fees and customer service, as well as for skilled employees.
Company’s primary competitors include Aavas Financiers Ltd, Home First Finance Company India Ltd, Aptus Value Housing Finance India Ltd, and India Shelter Finance Corporation Ltd.
Management Team:
- Mr. Om Prakash Bhatt (Designation: Non-Executive Chairman and Independent Director)
- Mr. Rishi Anand (Designation: Managing Director and Chief Executive Officer)
Objectives of the Issue:
Offer For Sale: (Rs. 2000 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh issue: (Rs.1000cr)
- To meet future capital requirements towards onward lending.
- General corporate purposes.
Positives for the Company:
- HFC focused on the low income housing segment (ticket size less than ₹1.5 million) in India with the highest AUM and net worth among our analyzed peers in Fiscal 2021, Fiscal 2022, Fiscal 2023 and nine months ended December 31, 2022 and December 31, 2023.
- Seasoned business model with strong resilience through business cycles.
- Extensive branch and sales office network, geographical penetration and sales channels which contribute significantly to loan sourcing and servicing.
- Robust, comprehensive systems and processes for underwriting, collections and monitoring asset quality.
- Access to diversified and cost-effective long-term financing with a disciplined approach to asset liability and liquidity management.
- Social objectives are one of the core components of our business model.
- Experienced, cycle-tested and professional management team with strong corporate governance.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 1895.1 | 1488.2 | 2043.5 | 1575.5 |
| Net Profit | 547.8 | 404.0 | 544.7 | 340.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Aadhar Housing Finance Ltd |
10 | 13.4 | 23.50 | 14.7% | 93.7 |
| Aavas Financiers Ltd | 10 | 54.3 | 28.1 | 14.1% | 413.6 |
| Aptus Value Housing Finance Ltd | 2 | 10.1 | 31.3 | 16.1% | 67.1 |
| Home First Finance Company India Ltd | 2 | 25.2 | 34.9 | 13.5% | 206.5 |
| India Shelter Finance Corporation Ltd | 5 | 17.5 | 33.1 | 13.4% | 141.4 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th May 2024 |
| Issue Closes on:. | 10th May 2024 |
| Issue Price | Rs.300 – 315 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 47 shares |
| Minimum Investment | Rs.14,805 |
| Issue Constitutes | 22.33% |
| Issue Size | Rs.3000 cr ($ 360 million) |
| Market Cap | Rs.13435 cr ($ 1.6 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 3,17,46,031 (Rs.1000 cr) |
| Equity Shares Offered (OFS) | 6,34,92,063 (Rs. 2000 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 9,52,38,094 (Rs.3000 cr) |
| Equity Shares Prior to the Issue | 39,47,54,970 |
| Equity Shares after the Issue | 42,65,01,001 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 13th May 2024 |
| Initiation of Refunds | On or Before 14th May 2024 |
| Credit of Equity Shares: | On or Before 14th May 2024 |
| Listing Date: | On or Before 15th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 13.4 | 23.50 | 14.7% | 93.7 |
| Should You Subscribe or Not ? (Markets Guruji’s View) |
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| Aadhar Housing Finance Ltd stands as a beacon of hope in the realm of housing finance, specifically tailored to cater to the low-income housing segment. With a sharp focus on economically weaker and low-to-middle income individuals, it provides indispensable support through small ticket mortgage loans. The company’s diverse array of mortgage-related loan products encompasses residential property purchase and construction, home improvement and extension loans, and loans for commercial property ventures.
Backed by the formidable resources, relationships, and expertise of Blackstone Group Inc., a global investment powerhouse, Aadhar Housing Finance Ltd enjoys a strategic advantage. The extensive network of 487 branches ensures accessibility and outreach, bolstering its impact across regions. For investors, the company presents a promising opportunity with the potential for small listing gains and long-term considerations. |
| Check IPO Allotment Status: |
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KfinTech Website: http://kfintech/IPO/Allotment_Status |
| Company Contact Info: |
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| Aadhar Housing Finance Ltd Unit No. 802, 8th Floor, Natraj by Rustomjee, Junction of Western Express Highway M. V. Road, Andheri (East), Mumbai 400 069, Maharashtra, India. Telephone: +91 22 4168 9900 Email: complianceofficer@aadharhousing.com Website: https://aadharhousing.com/ |
| IPO Registrar Info: |
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| 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 |
