Aadhar Housing Finance IPO subscription opens on May 8: From Price band to listing date, check key details

Aadhar Housing Finance IPO, a book-build issue of ₹3,000 crore, is all set to open on May 8 and close on May 10, 2024.

The mainboard initial public offering of the housing finance company is a mix of fresh issue of 3.17 crore shares of a face value of ₹10 each and OFS (offer-for-sale) of 6.35 crore shares. The fresh issue of shares is worth ₹1,000 crore and OFS ₹2,000 crore.

Out of the total IPO offer size, the company has earmarked not more than 50% of the net issue for qualified institutional investors (QIBs), not less than 35% of the net issue for retail buyers and not less than 15% for non-institutional investors (NIIs).

Aadhar Housing Finance, which will list its IPO shares on BSE and NSE, is expected to use the net proceeds of the IPO to meet capital requirements for onward lending. The company will also use funds for general corporate purposes.

Five key things to know about the Aadhar Housing Finance IPO:

Aadhar Housing Finance IPO price band and lot size

Aadhar Housing Finance IPO price band has been fixed at ₹300 to ₹315 per share and the minimum lot size for an application at 47 shares, requiring an investment of ₹14,805 from retail investors. The minimum lot size of investment for small HNIs is 14 lots or 658 shares, amounting to ₹2,07,270. It is 68 lots or 3,196 shares for big HNIs, who need to invest at least ₹10,06,740.

Aadhar Housing Finance IPO Allotment

The housing finance company is expected to finalise the share allotment for investors on May 13, 2024. Subsequently, non-allottees of shares will get their money back on account of the non-receiving of shares on May 14, while those successful will see their shares credited to their Demat accounts on the same day.

How to check allotment status

Successful bidders will be able to check their allotment status on BSE and NSE, apart from the registrar portal. It is important to note that the final subscription status will be known only after the company finalizes the allotment.

Aadhar Housing Finance IPO listing

The company will list its IPO shares on both bourses - BSE and NSE, with the tentative listing date being fixed as May 15, 2024.

Aadhar Housing Finance IPO key appointments

The company has appointed ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory And Securities (India), and SBI Capital Markets as the book-running lead managers. Kfin Technologies Limited has been appointed as the IPO registrar.

About Aadhar Housing Finance Ltd

Aadhar Housing Finance was set up in 2010, with the aim of capturing the lower-income segment of the market. Its deep-impact branches' sales offices target customers in Tier 4 and 5 towns in the country.

As of September 2023, Aadhar Housing Finance had enrolled 12,221 'Aadhar Mitras' who were given referral fees for sourcing customer loans. The company offers various types of mortgage loan products for residential and commercial property buyers. It also provides loans for construction, home improvement, and extension.

Till September 2023, Aadhar Housing Finance expanded its network to 471 branches, including 91 sales offices. The company's 471 branches are spread across 20 states and union territories across the country.