Unlocking Potential: A Deep Dive into Aadhar Housing Finance Ltd's IPO
Key Highlights:
- Aadhar Housing Finance Ltd’s IPO size is Rs 3000 crores
- The IPO’s lot size is 47, with the price range between Rs 300 to Rs 315
- The company will get listed on stock exchanges on 15th May
It’s raining initial public offerings (IPOs) for investors. The IPO juggernaut that started last year continues unabated. With the benchmark indices touching new highs, companies across industry verticals are looking to get listed on bourses. Aadhar Housing Financing Ltd is one of several companies all set to launch its IPO. Read on to find out essential details of this IPO.
About Aadhar Housing Finance Ltd
Aadhar Housing Finance Company is into housing finance catering to the low-income housing segment. It serves economically weaker and low-to-middle-income customers who need small-ticket mortgage loans. The company offers a range of mortgage-related loan products and has 487 branches, including 109 sales offices as of 31st December 2023.
Source: RHP
IPO Details and Objectives
Aadhar Housing Finance Ltd has launched its IPO on 8th May. The IPO will close on 10th May. The table below highlights other key details of the IPO:
Particulars
IPO size
Key Information
Rs 3,000 crores
Particulars
IPO lot size
Key Information
47
Particulars
Price range
Key Information
Rs 300 - Rs 315
Particulars
Minimum investment
Key Information
Rs 14,805
Particulars
Face value
Key Information
Rs 10
Particulars
IPO issue type
Key Information
Book building
Particulars
Listing date
Key Information
15th May
Particulars
Listing on
Key Information
BSE and NSE
| Particulars | Key Information |
|---|---|
IPO size | Rs 3,000 crores |
IPO lot size | 47 |
Price range | Rs 300 - Rs 315 |
Minimum investment | Rs 14,805 |
Face value | Rs 10 |
IPO issue type | Book building |
Listing date | 15th May |
Listing on | BSE and NSE |
The company plans to utilise the funds obtained to meet:
-
Future capital requirements towards onward lending
-
General corporate purposes
Further, a portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
Financial Snapshot
The financials of Aadhar Housing Finance Ltd are impressive. Below are some of its key financials across different financial years:
Particulars
Total income (in crores)
FY 23
Rs 2043.52
FY 22
Rs 1728.56
FY 21
Rs 1575.55
Particulars
Profit after tax (in crores)
FY 23
Rs 544.76
FY 22
Rs 444.85
FY 21
Rs 340.13
Particulars
Total assets (in crores)
FY 23
Rs 16,617.87
FY 22
Rs 14,375.81
FY 21
Rs 13,630.33
Particulars
Return on equity
FY 23
16.5%
FY 22
15.2%
FY 21
13.5%
Particulars
Diluted earnings per share
FY 23
13.4
FY 22
10.9
FY 21
8.4
| Particulars | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total income (in crores) | Rs 2043.52 | Rs 1728.56 | Rs 1575.55 |
Profit after tax (in crores) | Rs 544.76 | Rs 444.85 | Rs 340.13 |
Total assets (in crores) | Rs 16,617.87 | Rs 14,375.81 | Rs 13,630.33 |
Return on equity | 16.5% | 15.2% | 13.5% |
Diluted earnings per share | 13.4 | 10.9 | 8.4 |
Industry Overview
The housing finance market, focusing on low-income housing loans in was around Rs 4.4 trillion as of December 2023. As per CRISIL MI&A, the loans outstanding in housing finance focused on low income housing segment is expected to touch Rs 5.4-5.7 trillion by March 2026, translating into an 8-10% CAGR between fiscals 2023 and 2026.
Source: RHP
Wrapping it up
Before investing in any company’s IPO, you should read its red herring prospectus (RHP), and Aadhar Housing Finance Ltd is no different. Read the prospectus to get an overview of its strengths and risks before subscribing.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
Source: RHP
FAQs
Is Aadhar Housing Finance a listed company?
Aadhar Housing Finance will soon become a listed company after its IPO on 8th May. The company will get listed on the stock exchanges on 15th May.
What is the old name of Aadhar Housing Finance?
Aadhar Housing Finance was earlier known as Vysya Bank Housing Finance Limited.
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