Aadhar Housing Finance Ltd. IPO

Aadhar Housing Finance Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹315

Issue Price

Listing Price

₹314

Listing Price

Listing Gains

-₹0.70 (-0.22%)

Listing Gains

IPO Details

Bidding Dates

08 May - 10 May '24

Bidding Dates

Min. Investment

₹14,100

Min. Investment

Lot Size

47.00

Lot Size

Price Range

₹300 - ₹315

Price Range

Issue Size

2,858 Cr

Issue Size

Subscription Rate

  • Retail Individual Investor
    2.46x
  • Non-Institutional Investor
    16.50x
  • Qualified Institutional Buyers
    72.78x
  • Employees
    6.52x


About Company

Aadhar Housing Finance Limited was established in 2010. It is a housing finance company that is geared towards the lower-income segment. It aims to serve customers in tier 4 and tier 5 towns in India. The company offers an array of mortgage loan products catering to various needs, including residential and commercial property acquisition or construction, as well as home improvement and extension loans. As of September 30, 2023, Aadhar Housing Finance Limited has enrolled 12,221 Aadhar Mitras, agents who receive referral fees for sourcing customers’ loans. The company has a widespread network of 471 branches, including 91 sales offices, which operate around 10,926 pin codes in the country.

Important Dates - Aadhar Housing Finance Limited IPO

Application opens on 08th May 2024
Last date of application 10th May 2024
Date of Allotment 13th May 2024
Refund begins from 14th May 2024
Credit of shares to Demat 14th May 2024
Listing date 15th May 2024


Aadhar Housing Finance Limited IPO Grey Market Premium

Date GMP
06th May Rs.52
05th May Rs.52
04th May Rs.55

Why should you invest in Aadhar Housing Finance Ltd. IPO?

Aadhar Housing Finance Limited has an extensive presence ensuring accessibility and convenience for their clients. As of September 30, 2023, their services extended to 471 branches, including 91 sales offices, spanning 20 states and union territories that include approximately 10,926 pin codes across India. One of the core objectives of their business model is financial inclusion for the low-income segment and contributing to improving their standard of living. 

The company has robust systems for underwriting, collections, and monitoring asset quality. They have adopted a digital IT infrastructure to improve operational efficiency and increase customer reach and distribution capability.

Between the financial years ending March 31, 2023, and March 31, 2022, the company’s revenue witnessed an 18.22% increase, while its profit after tax surged by 22.22%. As of September 30th, 2023, the company has a dedicated team of 3,695 employees. Its subsidiary, Aadhar Sales and Services Private Limited (ASSPL), also contributes significantly with a 1,851-employee workforce. Through 471 branches and offices, the company has served 246,983 customers across the nation.

 

Aadhar Housing Finance Limited IPO Noteworthy Highlights

The following goals are to be funded by the net proceeds from the issue, according to the company's proposal:

  1. Meet the future requirements for capital for onward lending.
  2. General corporate purposes.

 

Financial Snapshot - Aadhar Housing Finance Limited IPO

Check out the financial performance of Aadhar Housing Finance for recent years:

Financial Year Total Assets Total Revenues Net Profit
March 2021 Rs 13,630.33 crore Rs 1,575.55 crore Rs 340.46 crore
March 2022 Rs 14,375.81 crore Rs 1,728.56 crore Rs 446.20 crore
March 2023 Rs 16,617.87 crore Rs 2,043.52 crore Rs 545.34 crore


Aadhar Housing Finance Ltd. IPO - SWOT Analysis

Strengths

  1. Aadhar Housing Finance Limited has a robust and extensive network of branches and sales offices across India.
  2. The company's focus on the lower-income segment reflects a strong commitment to financial inclusion and social objectives.
  3. The company has developed strong systems for underwriting, collections, and monitoring asset quality.
  4. The company has migrated to a digital IT infrastructure to increase operational efficiency while increasing customer reach and distribution capability.

Weaknesses

  1. The company’s reliance on an incentivised model for customer acquisition could pose some challenges in the long term.
  2. Operating primarily in the lower-income segment and in tier 4 and tier 5 towns may expose the company to concentration risk.

Opportunities

  1. The company can capitalise on the untapped market potential in regions that are often overlooked. 
  2. They can leverage digital platforms for loan processing, customer engagement, and risk management to stay ahead of the competition.

Threats

  1. The company is vulnerable to potential regulatory risks resulting from changes in regulatory policies and compliance requirements in the housing finance sector.
  2. The housing finance industry is highly competitive and the company faces the threat of competition if they struggle to innovate and adapt.



How to apply for Aadhar Housing Finance Ltd. IPO?

You can apply for the Aadhar Housing Finance Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Aadhar Housing Finance Ltd. click here.
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Aadhar Housing Finance Ltd. IPO FAQs

What are the opening and closing dates for Aadhar Housing Finance Limited?

Aadhar Housing Finance Limited IPO will open for subscription on May 8, 2024 and close on May 10, 2024.

What is the price band for Aadhar Housing Finance Limited?

The price band for Aadhar Housing Finance Limited is ₹300 to ₹315 per share.

What is the minimum and maximum lot size for Aadhar Housing Finance Limited?

The minimum lot size is 47 shares.

Who are Aadhar Housing Finance Limited's lead managers?

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets Limited are the Book Running Lead Managers (BRLM) to the issue.

Who is the registrar of the issue?

Kfin Technologies Limited is the registrar for Aadhar Housing Finance Limited IPO.

When will the Aadhar Housing Finance Limited allotment take place?

The finalisation of the basis of allotment for Aadhar Housing Finance Limited IPO will be done on May 13, 2024, and the allotted shares will be credited to investors’ demat accounts by May 14, 2024.

When and where will the Aadhar Housing Finance Limited shares be listed?

The equity shares of Aadhar Housing Finance Limited are anticipated to be listed on May 15, 2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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