About the Company:
Aptus Value Housing Finance India Ltd is an entirely retail focussed housing finance company primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India.
Company offer customers home loans for the purchase and self-construction of residential property, home improvement and extension loans; loans against property; and business loans.
Company offers loans only to retail customers and do not provide any loans to builders or for commercial real estate and targets first time home buyers where the collateral is a self-occupied residential property.
Company do not provide any loans with a ticket size above Rs.25 lakhs and the average ticket size of loan’s is around Rs.7 lakhs.
Company is one of the largest housing finance companies in south India in terms of AUM, as of December 31, 2020.
Company’s AUM have increased from Rs.1416.7 crores, as of March 31, 2018 to Rs.37,90.9 crores, as of December 31, 2020, at a CAGR of 38.83%.
Since the inception company has not restructured any loans or written-off any loans receivable and as of December 31, 2020, company’s gross NPAs expressed as a percentage of Gross Loan Assets was 0.77%.
Major Presence in South India.
As of December 31, 2020, the states of Tamil Nadu (including the union territory of Puducherry), Andhra Pradesh, Karnataka and Telangana accounted for 53.48%, 26.51%, 9.99% and 10.02% of company’s AUM, respectively, and had a network of 181 branches covering 75 districts in such states and the union territory of Puducherry.
Marquee shareholders.
Company’s marquee shareholders include WestBridge Crossover Fund, LLC (company’s Investor Promoter), Malabar India Fund Limited (an affiliate of Malabar Investments), SCI Investments VI (an affiliate of Sequoia Capital), Madison India Opportunities IV (Madison India Capital) and Steadview Capital Mauritius Limited (an affiliate of Steadview Capital Management).
Company plans to Increase expand branch network in large housing markets.
Company’s operations are currently focused in the states of Tamil Nadu (including the union territory of Puducherry), Andhra Pradesh, Karnataka and Telangana and had a network of 190 branches in these states and the union territory of Puducherry, as of March 31, 2021.
Company intends to continue to expand presence in an on-ground contiguous manner in order to achieve deeper penetration in these regions.
Before setting up new branches, company conducts research and consider a number of factors such as regional demographics, level of urbanization and the competitive landscape.
Company also intend to expand our branch network in large housing markets in the states of Maharashtra, Odisha and Chhattisgarh.
Company’s key financial and operational information:
Competition in the Business:
Company’s primary competitors include Aadhar Housing Finance, Home First Finance Company India, Cholamandalam Investment and Finance Company, Shriram City Union Finance, Shriram Housing Finance , Repco Home Finance, HDB Financial Services, Vistaar Financial Services Private Ltd and several small finance banks.
Management Team:
- Mr. M Anandan (Designation: Chairman and Managing Director)
- Mr. Kandheri Munuswamy Mohandass (Designation: Non-Executive Independent Director)
Objectives of the Issue:
Offer for Sale: (Rs. 2280 cr)
- Each Selling Shareholder shall be entitled to the proceeds of the Offer for Sale.Company shall not receive any proceeds from the Offer for Sale.
Fresh Issue: (Rs. 500 cr)
- Augmenting company’s capital base to meet future capital requirements.
- Benefits of Listing on Stock Exchanges.
Positives for the Company:
- Presence in large, underpenetrated markets with strong growth potential.
- Robust risk management architecture from origination to collections leading to superior asset quality.
- In-house operations leading to desired business outcomes.
- Domain expertise resulting in a business model difficult to replicate by others in our geographies.
- Experienced and stable management team with marquee shareholders.
- Established track record of financial performance with industry leading profitability.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 199.1 | 323.8 | 500.3 | 655.2 |
| Net Profit | 66.5 | 111.5 | 211.0 | 266.8 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Aptus Value Housing Finance India Ltd |
2 | 5.55 | 63.60 | 13.49% | 41.12 |
| Aavas Financiers Ltd | 10 | 36.62 | 67.44 | 12.06% | 305.86 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 10th August 2021 |
| Issue Closes on:. | 12th August 2021 |
| Issue Price | Rs. 346 – 353 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35% |
| Minimum Lot | 42 shares |
| Minimum Investment | Rs.14,826 |
| Issue Constitutes | 15.89% |
| Issue Size | Rs. 2780 cr ($375 million) |
| Market Cap | Rs.17,493 cr ($ 2.36 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,41,64,305 |
| Equity Shares Offered (OFS) | 6,45,90,695 |
| Equity Shares Offered (Fresh + OFS) | 7,87,55,000 |
| Equity Shares Prior to the Issue | 48,14,16,290 |
| Equity Shares after the Issue | 49,55,80,595 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 18th August 2021 |
| Initiation of Refunds | on or Before 20th August 2021 |
| Credit of Equity Shares: | on or Before 23rd August 2021 |
| Listing Date: | on or Before 24th August 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,57,51,000 | 0.25 | 0.33 | 32.41 |
| NII | 1,18,13,250 | 0.01 | 0.06 | 33.91 |
| Retail | 2,75,64,250 | 0.33 | 0.54 | 1.35 |
| Employee | ———— | —– | —- | —– |
| TOTAL | 5,51,28,500 | 0.24 | 0.37 | 17.20 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 5.55 | 63.60 | 13.49% | 41.12 |
| Check IPO Allotment Status: |
|---|
KfinTech Website : http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Aptus Value Housing Finance India Ltd No. 8B, Doshi Towers, 8th Floor, No: 205, Poonamallee High Road, Kilpauk, Chennai 600 010, Tamil Nadu, India. Telephone: +91 44 4565 0000; E-mail: cs@aptusindia.com; Website: www.aptusindia.com |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium, Tower B, Plot No. – 31 and 32 Financial District Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: aptus.ipo@kfintech.com Website: www.kfintech.com |
