Aadhar Housing Finance sets IPO price band of Rs 300 to Rs 315 per share

Aadhar HFC provides a variety of mortgage loan products for residential and commercial property purchase and construction, home improvement and extension

Blackstone Group-backed Aadhar Housing Finance Company (HFC), which is coming out with an IPO to raise Rs 3000 crore, has fixed the price band between Rs 300 to Rs 315 per share. The public offering opens on May 8.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 1,000 crore and an offer for sale of up to Rs 2,000 crore by BCP Topco VII Pte, an affiliate of funds managed by affiliates of Blackstone Group.

BCP Topco VII Pte currently holds 98.72 per cent stake in the company. It has been a promoter in the company since June 2019 while the rest of the shares are held by public shareholders with ICICI Bank having 1.18 per cent shareholding.

 

Mukesh Mehta, senior MD, Blackstone Private Equity, said, “After the listing, the company’s stake in Aadhar Housing Finance will come down to 76.6 per cent. However, we will continue to be the largest shareholder in the company.”

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Aadhar HFC, which is focused on the lower income segment, provides a variety of mortgage loan products for residential and commercial property purchase and construction, home improvement and extension. 

As of December 31, 2023, the company had 487 branches in 533 districts covering 10,926 pin codes in 20 states and union territories throughout India. 

The net profit of the company has increased to Rs 547.78 crore for the nine-month period ending December 2023, up from Rs 404.01 crore of the same period of the previous year.

The Assets Under Management (AUM) of the company increased 16.5 per cent year-on-year (YoY) to Rs 19,865.2 crore till December 2023.

The company will use Rs 750 crore from the proceeds towards meeting its future capital requirements while the remaining will be used for other general corporate purposes. 

ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and SBI Capital Markets are the book-running lead managers to the issue.