Aavas Financiers received draft letter of offer by JM Financial; Aquilo House to acquire 26% stake at ₹1,766.69 per share

The company reported that Aquilo House and several people acting in concert (PACs) will acquire a 26% stake in the company’s expanded voting share capital. As per the draft letter submitted by JM Financial, Aquilo House and the PACs will acquire 20,739,711 fully paid-up equity shares with a face value of ₹10 each from the public shareholders of Aavas Financials. The transaction would take place at ₹1,766.69 per share amounting to ₹3,664 crore.

The company stated that Aquilo House has appointed JM Financial as the manager of the open offer.

For the quarter ended June 30, 2024, Aavas Financiers reported a 15% year-on-year (YoY) rise in net profit to ₹126 crore. The company’s total net income came in higher by 10% YoY to ₹306.4 crore.

In Q1FY25, Aavas Financiers’ assets under management (AUM) jumped 22% YoY to ₹17,841 crore. Meanwhile, the returns on assets (ROA) declined by 15 basis points (bps) YoY to 3.01% and the return on equity (ROE) was down 4 bps YoY to 13.14%.

During the quarter, the company’s gross stage 3 stood at 1.01%, higher by 1 bps YoY while the net stage 3 came in at 0.72%.

Sachinder Bhinder, managing director and chief executive officer of Aavas Financiers, said that the company remains focused on serving the underserved segments in tier 2 to tier 5 markets. The company has seen improvements in its turnaround time due to efforts to drive technological transformation,

“Our network has expanded to 371 branches across 13 states, with the addition of 4 new branches this quarter,” he added.

Shares of the company have risen by nearly 9% since the beginning of the year. The stock has gained over 6% in the past year.