The much-anticipated Aadhar Housing Finance IPO has opened for subscription today, with a price band set at ₹300 to ₹315 per share. The Blackstone-backed business raised ₹898 crore from anchor investors on May 7, generating significant interest in the market.
Aadhar Housing Finance is targeting retail investors with 35% of the issue size, non-institutional investors (NIIs) with 15%, and qualified institutional buyers (QIBs) with 50% of the issue size. The company is also offering a discount of ₹23 per share to its employees, further enhancing its appeal.
Founded in 2010, Aadhar Housing Finance focuses on providing housing finance solutions to lower-income groups, particularly in India’s tier 4 and tier 5 towns. The company has a network of 471 branches, including 91 sales offices, serving approximately 10,926 pin codes across 20 states and union territories.
With a profit after tax (PAT) increase of 22.22% and revenue growth of 18.22% between March 2022 and March 2023, Aadhar Housing Finance has demonstrated strong financial performance leading up to its IPO.
The brokerage firm BP Equities Pvt Ltd has given the IPO a SUBSCRIBE rating, citing the company’s growth potential, portfolio performance, and sustained profitability. However, they also caution investors about the inherent risks associated with the affordable housing market and the company’s reliance on borrowing.
Overall, the Aadhar Housing Finance IPO has generated significant interest in the market, with a Grey Market Premium (GMP) of +70 indicating strong investor demand. It is projected that the shares will list at a price of ₹385, a 22.22% increase from the IPO price, reflecting investors’ willingness to pay a premium for this promising opportunity.