Aadhar Housing Finance IPO receives 43% subscription on Day 1
Upstox
2 min read • Updated: May 8, 2024, 6:30 PM
Summary
Aadhar Housing Finance's IPO received 43% subscription on day 1, attracting bids for 30.45 crore shares out of the 7.01 crore shares offered. Retail investors subscribed to 41% of their portion, while QIBs and non-institutional investors subscribed to 33% and 60% respectively.
The Initial Public Offer (IPO) of Aadhar Housing Finance, which is backed by private equity major Blackstone, received 43% subscription on the first day of bidding on Wednesday. The ₹3,000 crore IPO got bids for 3,04,53,979 shares against 7,00,89,373 shares on offer, as per NSE data.
The quota for non-institutional investors received 60% subscription while the retail Individual Investors (RIIs) category got subscribed 41%. The portion for Qualified Institutional Buyers (QIBs) fetched 33% subscription.
The 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. Currently, BCP Topco holds a 98.72% stake in Aadhar Housing Finance. The IPO is in a price range of ₹300-315 a share.
Aadhar Housing Finance Ltd on Tuesday said it has mobilised ₹898 crore from anchor investors. 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.
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. The company benefits from the resources, relationships and expertise of Blackstone, one of the world's leading investment firms.
ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the managers to the offer.
This article has been sourced directly from the PTI news feed. Except for the headline and summary, no other changes have been made.