Aadhar Housing Finance receives Sebi’s nod for ₹5,000 crore IPO

The Securities and Exchange Board of India (SEBI) on Monday, April 8, approved the ₹5,000-crore initial public offering (IPO) of Aadhar Housing Finance Ltd.

The realty firm backed by global private equity major Blackstone had filed draft papers for the IPO on February 2, 2024.

Blackstone acquired a stake in Aadhar Housing Finance for approximately $300 million in 2019.

The proposed maiden public issue will comprise a fresh issue of shares of worth up to ₹1,000 crore and an offer-for-sale portion worth nearly ₹4,000 crore.

The IPO marks Aadhar Housing Finance’s second attempt at listing, following the cancellation of an earlier plan in 2022. The affordable home financier had filed papers for an IPO in January 2021 and received regulatory approval in May 2022 to raise a little over ₹7,000 crore.

However, Aadhar Housing opted not to proceed with the public offer. With the validity of the approval expiring after a year, as per the SEBI timeline, issuers were required to file fresh draft papers.

Aadhar Housing Finance intends to use the proceeds from the IPO to bolster its capital base and to meet future capital requirements.

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kfin Technologies Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers for the issue.

Incorporated in 1990, Aadhar Housing Finance Limited was formerly known as DHFL Vysya Housing Finance Ltd. It was originally incorporated in Bengaluru as Vysya Housing Finance Ltd. The company changed its name to AHFL later.

AHFL is a retail-focused housing finance company registered with the National Housing Bank (NHB). It provides affordable housing financing products for the economically weaker section and low-income group segments, specifically targeting tier-2 to tier-4 cities and towns. AHFL caters to diverse customer groups, with a particular emphasis on salaried (both formal and informal) and self-employed (business and professional) home buyers in both formal and informal sectors.

Aadhar Housing Finance Operations

AHFL caters to diverse customer groups, with a particular emphasis on salaried (both formal and informal) and self-employed (business and professional) home buyers in both formal and informal sectors.

The housing finance firm primarily focuses on the low-income housing segment and first-time home buyers. It has presence across 20 states and Union Territories. As per the company’s Annual Report for FY 2022-23, it operated 479 branches and managed more than 2.33 lakh accounts. The company's total disbursements touched ₹5,903 crore while its total assets under management (AUM) stood at ₹17,223 crore. The company employed 3,633 workers as of FY 2022-23.

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