Aadhar Housing Finance IPO Day 2: Issue overall subscribed 62%, while NII part booked 81% so far

Aadhar Housing Finance IPO Day 2: On the second day of bidding, the initial public offering (IPO) of Aadhar Housing Finance, backed by Blackstone, garnered a subscription rate of 62 percent. Investors enthusiastically placed bids for 4.32 crore equity shares, despite the offering comprising only 7 crore equity shares. This substantial interest signals a promising start for Aadhar Housing Finance as it ventures into the public market, backed by the confidence of investors.

Non-institutional investors took the lead, demonstrating strong interest by acquiring 81 percent of the shares reserved for them. Retail investors followed suit, securing 57 percent of their allotted quota, showcasing a healthy participation from individual investors. Qualified institutional buyers (QIBs) also showed considerable interest, subscribing to 53 percent of their portion, indicating confidence from institutional investors as well. This balanced participation across investor categories underscores the broad appeal of Aadhar Housing Finance’s IPO.

The IPO comprises a fresh issue of shares valued at Rs 1,000 crore alongside an offer-for-sale (OFS) totaling Rs 2,000 crore by promoter BCP Topco VII Pte, affiliated with Blackstone Group. At the higher end of the price range, the company’s valuation surpasses Rs 13,000 crore. The offering’s price band, set between Rs 300 and Rs 315 per share, remains open for subscription until May 10.

The company specializes in catering to the low-income housing sector by offering predominantly small-ticket mortgage loans. As of December 2023, the average loan size was Rs 10 lakh, with an average loan-to-value ratio of 58.3 percent. Throughout the first nine months of FY24, salaried individuals accounted for 57.2 percent of its Assets Under Management (AUM), while the self-employed segment contributed the remaining 42.8 percent.