After a muted debut in the previous session, Aadhar Housing Finance jumped as much as 7.5 percent in intra-day deals today to its new high of ₹354.50.
"The company's focus on the rapidly growing low-income housing segment, which is projected to be the fastest sub-segment within the housing finance industry, has garnered a decent subscription demand.
Aadhar Housing Finance is well-positioned for growth.
On Tuesday, May 7, the Aadhar Housing Finance IPO raised ₹898 crore from anchor investors.
Aadhar Housing Finance Limited is a housing finance firm that caters to the lower-income sector.
After a muted debut in the previous session, Aadhar Housing Finance jumped as much as 7.5 percent in intra-day deals today to its new high of ₹354.50.
The stock has now advanced 12.5 percent from its issue price of ₹315.
Aadhar listed at ₹315 on NSE, the same as its issue price. Meanwhile, on BSE, the stock listed at ₹314.30, a discount of 0.22 percent.
Despite the flat listing, experts believe that the long-term outlook of the stock remains intact.
"The company's focus on the rapidly growing low-income housing segment, which is projected to be the fastest sub-segment within the housing finance industry, has garnered a decent subscription demand. With its reasonable valuations, it presents a promising long-term investment opportunity for conservative investors," said Prashanth Tapse, Senior VP — Research at Mehta Equities.
Aadhar Housing Finance is well-positioned for growth. Its reasonably priced ask valuations compared to industry peers, growing Gross AUM and Net Worth, stable average ticket size of loans, and increasing penetration into tier 4 and tier 5 towns all indicate sound financial health and potential for further expansion, Tapse added.
The ₹3,000 crore initial public offering (IPO) of Aadhar Housing Finance was open for subscription between May 8, 2024 - May 10, 2024, with a price band in the range of ₹300-315. On Tuesday, May 7, the Aadhar Housing Finance IPO raised ₹898 crore from anchor investors.
Aadhar Housing witnessed strong subscriptions in all categories in the 3 days of bidding. Overall, it was subscribed 26.76 times. Investors bid for 178.65 crore shares as against 6.67 crore on offer. The QIB portion was subscribed the most, 76.42 times followed by the NII category, which was bud 17.33 times. Meanwhile, the employee part was subscribed 6.88 times and the retail portion 2.58 times.
The issue was a combination of a fresh issue of 3.17 crore shares aggregating to ₹1,000 crore and an offer for sale of 6.35 crore shares aggregating to ₹2,000 crore by promoter BCP Topco VII Pte Ltd, a Blackstone Group affiliate. BCP Topco owned 98.7 percent of the pre-offer issued, subscribed, and paid-up equity share capital.
Aadhar Housing Finance Limited is a housing finance firm that caters to the lower-income sector. The sales offices of the deep impact branches are aimed at clients in India's tier 4 and tier 5 towns. As of September 30, 2023, the firm had enlisted 12,221 Aadhar Mitras, who earned referral fees for originating loans for consumers. The organisation offers a wide range of mortgage financing options for residential and commercial property purchases and development, as well as home remodelling and expansion.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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