Aadhar Housing Finance Limited, which is an HFC focused on the low-income housing segment in India, has received final observations from SEBI for their proposed IPO.
The company plans to raise around ₹5,000 crore through the public issue. It presented its projects in February this year.
Earlier, in January 2021, Aadhar Housing submitted draft papers to Sebi, getting approval from the regulator in May 2022 to raise slightly more. ₹7,000 crores. However, it chose not to continue with the outlined plans.
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The new issuance plan includes a new stock offering ₹1,000 crore next to a ₹4,000 crore offer for sale. Within the offer for sale (OFS), promoter BCP Topco VII Pte will divest its stake.
BCP Topco, the promoter, and subsidiary of a fund managed by Blackstone, currently owns 98.7% of the pre-offer issued, subscribed, and paid-up share capital. Leveraging the resources, relationships and expertise of Blackstone, a renowned global investment firm, the company benefits.
Aadhar Housing intends to allocate the net proceeds to meet future capital needs related to onward lending and general corporate purposes.
AHFL is a retail-focused HFC focused on the low-income housing segment, serving economically weaker and low-to-middle income customers who require small ticket mortgage loans. The average portfolio size of their loans was ₹0.9 million with an average loan-to-value of 57.6% and 58.1%, on September 30, 2022 and September 30, 2023, respectively.
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The organization provides a variety of mortgage-related loan products, encompassing residential property purchase and construction loans, home improvement and extension loans, as well as loans for commercial property construction and acquisition. With a robust presence, it operates through 471 branches and 91 sales offices.
ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital, Nomura Financial Advisory and Securities (India), and SBI Capital are acting as the book-running lead managers for the issue.
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Published: 08 Apr 2024, 16:05 IST