IPO screener: Aadhar Housing issue subscribed 43% on Day 1

The initial public offering (IPO) of Aadhar Housing Finance was subscribed 0.43 times or 43 per cent on day 1 of issue opening on Wednesday. The IPO comes at a price band of ₹300-315. IPO closes on May 10 and the market lot is 47 shares.

The IPO received bids for 3.04 crore shares against 7 crore shares on offer (net off anchor portion).

The ₹3,000-crore IPO of Aadhar Housing Finance is a combination of a fresh issue of equity shares worth ₹1,000 crore and an OFS (offer-for-sale) of ₹2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

The portion for QIBs was subscribed 33 per cent. The quota for NIIs received 60 per cent subscription and retail Investors 41 per cent.

Currently, BCP Topco holds a 98.72 per cent stake in Aadhar Housing Finance.

The company plans to utilise ₹750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending, while a portion will be used for general corporate purposes.

As part of the IPO process, Aadhar Housing Finance Ltd has mobilised ₹898 crore from anchor investors. The company will allot 2.85 crore shares to 61 funds at ₹315 apiece.

Morgan Stanley Asia (Singapore) Pte Ltd, Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, Theleme India Master Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF and Quant MF are among the anchor investors.

Also read: Aadhar Housing IPO: Should you subscribe? 

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The housing finance company is focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers, who require small-ticket mortgage loans. It has a network of 471 branches, including 91 sales offices, as of September 30, 2023.

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