Employee - Aadhar Housing Finance Limited

About  Aadhar Housing Finance Limited

Incorporated in 2010, Aadhar Housing Finance Limited, as we know it today, was formed after  its merger with DHFL Vyasa in November 2017. It is one of India’s largest Housing Finance Company (HFC) focused on the low income housing segment. As of 31 December 2023, the company has the highest assets under management (AUM) among its peers.

It is a retail-focused affordable housing finance company, which focuses on economically weaker and low-to-middle income clients who require small-ticket mortgage loans. As of 31 December 2023, the average ticket size of the loans ranged between ₹9 to ₹10 lakh, with a loan-to-value ratio of 58.3%.

The company offers a range of mortgage-related loan products, including loans for residential property purchase and construction, home improvement and extension as well as for commercial property construction and acquisition. As of 31 December 2023, the gross AUM of Aadhar Housing Finance stood at ₹19,865 crore. The company has a diverse client base, with salaried-class making up 57.2% of total AUM, while self-employed customers contribute to the rest of the AUM.    

As of 31 December 2023, the company has an extensive network of 487 branches spread across 20 states and union territories, operating in approximately 10,926 pin codes across India. Its branch network is widely dispersed and no state accounts for more than 14% in terms of Gross AUM. 

The company employs a total of 3,885 people, whereas 1,875 are employed by its subsidiary as of 31 December 2023. 

It finances its capital requirements from term loans and working capital facilities, proceeds from loans assigned, proceeds from the issuance of NCDs, refinancing from the NHB, and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic and development financial institutions. Its strategy is to not rely on short-term loans and 100% of its total borrowing comprises long-term borrowings with a tenor of 1 year or more as of 31 December 2023. 

Between FY21 and FY23, Aadhar Housing Finance saw a CAGR rise of 9% in its revenue from operations and 17% in its profit. Between Q3 FY23 and Q3 FY24, its revenue from operations rose by 27% YoY and its profit by 35% YoY. Moreover, the Indian housing finance market is expected to grow at a CAGR of 13% to 15% between FY23 and FY26 on account of higher disposable income, rising demand from smaller cities markets, attractive interest rates and government impetus on housing. This could benefit the company. 

The company now plans to launch the Aadhar Housing Finance Ltd IPO. The Aadhar Housing Finance IPO will be a combination of an offer for sale as well as a fresh issue. The money raised from the fresh issue will be used to meet its future capital requirements and for general corporate purposes. Its shares will be listed on the NSE and BSE. 

Here are key details about the Aadhar Housing Finance Limited IPO:

Financial snapshot

Here’s a quick look at Aadhar Housing Finance Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. CAGR based growth of 8% in gross AUM between FY21 and FY23.
2. Resilient business model as financial performance has remained consistent through various external events in the Indian economy such as demonetisation, GST roll out and the COVID-19 pandemic.
3. The average ticket size of its loans has remained ₹9 lakh between FY21 and FY23 and increased to 10 lakh in Q3 FY24. 
4. A deep and comprehensive pan-India network with 55% of branches spread across 5 states and the remaining 44% spread across 15 states as of 31 December 2023.
5. Maintains a balance of cash and liquid investments to be able to combat any unforeseen market event.
6. Realizes social objectives as 72% of its gross AUM is sourced from customers in the economically weaker and low income group as of 31 December 2023.

Risks and threats

1. The company has consistently experienced negative cash flows from operating activities between FY21 and Q3 FY24 due to payment of tax and changes in working capital. 
2. Has total outstanding borrowing of ₹13,127 crore as of 31 December 2023 which could negatively affect its operations. 
3. Subject to periodic inspections by the NHB and RBI leading to compliance cost and penalties. 
4. The company has leased branches and offices. Hence, any termination or failure to renew lease agreement could impact business operations.  
5. Depends on the Indian real estate sector for its AUM and business growth. Any adverse event in the real estate sector may diminish the value of collateral. 
6. Depends on third-party selling agents for referral of 66% of its customers who do not exclusively work for the company as of 31 December 2023. 
7. Vulnerable to the volatility in interest rates

Aadhar Housing Finance Limited IPO details

|Aadhar Housing Finance Limited IPO date

According to the offer document filed by the company with the SEBI, the Aadhar Housing Finance IPO’s opening date – in other words, the Aadhar Housing Finance IPO launch date – will be 8th May 2024. The Aadhar Housing Finance IPO closing date is 10th May 2024. After this, investors will be updated about the allotment status on 13th May 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 14th May 2024. The Aadhar Housing Finance IPO listing date is 15th May 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Aadhar Housing Finance Limited IPO Price Band

The IPO is a fresh issue as well as an offer for sale. The Aadhar Housing Finance IPO price band has been set between ₹300 and ₹315 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Aadhar Housing Finance IPO listing price will be determined on 15th May 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Aadhar Housing Finance Limited IPO Lot size

The Aadhar Housing Finance IPO details have been declared. The Aadhar Housing Finance IPO lot size is set at 47 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Aadhar Housing Finance IPO issue size is approx ₹3,000 crore. 

How to pre-apply for the Aadhar Housing Finance Limited IPO?

You can pre-apply for the Aadhar Housing Finance Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Aadhar Housing Finance Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Aadhar Housing Finance Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Aadhar Housing Finance Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Aadhar Housing Finance Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Aadhar Housing Finance Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Aadhar Housing Finance Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Aadhar Housing Finance Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Aadhar Housing Finance Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Aadhar Housing Finance Limited IPO

To apply for the Aadhar Housing Finance Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Aadhar Housing Finance Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Aadhar Housing Finance Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.