- Aadhar Housing Finance files Rs 5,000-Crore IPO papers with Sebi.
- IPO includes fresh equity shares worth Rs 1,000 crore & Rs 4,000 crore offer-for-sale.
- Blackstone-backed BCP Topco holds 98.72% stake.
- Proceeds to address future lending needs & general corporate purposes.
- Offers mortgage products for residential and commercial properties.
- Extensive network of 471 branches and 91 sales offices as of Sept 30, 2023.
- Previous IPO attempt aimed at raising Rs 7,300 crore in January 2021.
- Lead managers: Mahindra Capital, Nomura, and SBI Capital Markets.
Aadhar Introduction:
Aadhar Housing Finance Ltd has started the IPO process by filing preliminary papers with the capital markets regulator Sebi. The company hopes to raise Rs 5,000 crore through the sale. The IPO consists of a new issue of equity shares of Rs 1,000 crore and an offer-for-sale (OFS) of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, a subsidiary of Blackstone Group Inc, as detailed in the Draft Red Herring Prospectus (DRHP) submitted on Wednesday.
Backed by Blackstone:
Aadhar Housing Finance is backed by private equity firm Blackstone, and BCP Topco owns 98.72 percent of the company. The fresh issue’s infusion of Rs 750 crore will be used to satisfy future capital requirements for lending, with a part set aside for general corporate needs.
Product offerings and networks:
Aadhar Housing Finance specialises in a variety of mortgage-related loan products, such as financing for residential property purchase and construction, home improvement and extension loans, and loans for commercial property construction and acquisition. As of September 30, 2023, the company has a network of 471 branches, including 91 sales offices, allowing for a wider reach and accessibility to consumers.
Previous endeavours:
This is not Aadhar Housing Finance’s first effort into the IPO market. The company previously filed draft papers with Sebi in January 2021, hoping to raise Rs 7,300 crore through an initial share offering. Although it received regulatory approval to proceed with the public offering in May 2022, the launch was postponed at that time.
Lead Managers:
Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and SBI Capital Markets have been named book-running lead managers for the public offering. Their knowledge and guidance will be critical in navigating the complexities of the IPO process and guaranteeing its success.
Conclusion:
Aadhar Housing Finance’s filing of IPO papers is an important milestone in its growth trajectory, demonstrating its commitment to extending its capital base and increasing its market presence. With Blackstone’s backing and a strong array of mortgage products, the company is well positioned to capitalise on prospects in India’s developing housing finance market. As the IPO process proceeds, investors eagerly anticipate the opportunity to participate in Aadhar Housing Finance’s potential future.