QIB portion fully booked, surpassing other portions

The Blackstone-backed Aadhar Housing Finance IPO witnessed a strong response from investors on the second day of bidding, with the subscription rate reaching 1.25 times the offering size. The IPO, which consists of 7 crore equity shares, received bids for 8.66 crore shares from investors.

Institutional investors (QIBs) showed significant interest in the IPO, subscribing nearly 2 times their allotted portion. Non-institutional investors also participated actively, subscribing 1.33 times their quota, while retail investors bought 78 percent of their allocated shares.

The IPO includes a fresh issue of shares worth Rs 1,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore by promoter BCP Topco VII Pte, an affiliate of Blackstone Group. The company’s valuation at the upper end of the price range exceeds Rs 13,000 crore. The price band for the offering, which is set to close on May 10, is fixed at Rs 300-315 per share.

Aadhar Housing Finance specializes in providing mortgage loans to the low-income housing sector, focusing on small-ticket loans. The company’s average loan size as of December 2023 was Rs 10 lakh, with an average loan-to-value ratio of 58.3 percent. Salaried individuals accounted for 57.2 percent of its Assets Under Management (AUM) in the first nine months of FY24, while self-employed individuals made up the remaining 42.8 percent.

Investors are closely watching the progress of the Aadhar Housing Finance IPO as it moves towards its closing date, with experts advising caution and thorough research before making investment decisions.