IPO Details
- Issue Type: Main Board IPO
- Issue Size: ₹3000.00 Crore
- Offer: Fresh Issue (₹1000 Cr) and Offer for Sale (OFS) (₹2000 Cr)
- Price Band: ₹300 – ₹315 per share
- Issue Open Date: May 8, 2024 (Tomorrow)
- Issue Close Date: May 10, 2024
- Expected Listing Date: May 15, 2024 (Tentative)
- Lead Managers: Kotak Mahindra Capital Company Limited, Axis Capital Limited, etc.
IPO Timeline
| IPO Open Date: | Wednesday, May 8, 2024 |
| IPO Close Date: | Friday, May 10, 2024 |
| Basis of Allotment: | Monday, May 13, 2024 |
| Refunds: | Tuesday, May 14, 2024 |
| Credit to Demat Account: | Tuesday, May 14, 2024 |
| IPO Listing Date: | Wednesday, May 15, 2024 |
About Company
Aadhar Housing Finance Limited (Aadhar HFL) is a retail-focused housing finance company (HFC) in India. They primarily cater to the economically weaker section (EWS) and low-to-middle-income (LMI) segments, offering small-ticket mortgages for affordable housing. As of September 2023, Aadhar HFL boasts the highest Assets Under Management (AUM) and net worth among its analyzed peers. They operate through a wide network of over 470 branches and 91 sales offices spread across 20 states and union territories.
OBJECTIVE
- To meet future capital requirements towards onward lending; and
- General corporate purposes.
POSITIVE
- Focus on Underbanked Segment: Aadhar HFL caters to the underserved EWS and LMI segments, offering growth potential as these segments gain more access to financial services.
- Strong Track Record: The company has shown consistent growth in revenue and profitability.
- Widest Network: Aadhar HFL boasts the highest AUM and net worth among its peers, indicating a strong market presence.
- Experienced Management: The company is backed by Blackstone, a leading global investment firm.
NEGATIVE
- Interest Rate Sensitivity: As an HFC, Aadhar HFL’s profitability is sensitive to interest rate fluctuations. Rising interest rates can impact loan repayments and margins.
- Macroeconomic Dependence: The company’s performance is tied to the overall health of the Indian economy, particularly the real estate sector.
- Competition: The housing finance sector is competitive, with established players and new entrants vying for market share.
So, how does Aadhar Housing Finance Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 18,035.57 | 16,617.87 | 14,375.81 | 13,630.33 |
| Revenue | 1,895.17 | 2,043.52 | 1,728.56 | 1,575.55 |
| Profit After Tax | 547.88 | 545.34 | 446.20 | 340.46 |
| Net Worth | 4,249.10 | 3,697.60 | 3,146.63 | 2,692.76 |
| Total Borrowing | 13,127.59 | 12,153.45 | 10,674.59 | 10,374.47 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Growth Trajectory: Aadhar HFL shows a steady rise in both assets (8.8% year-over-year) and revenue (11.1%) in the latest period (ending Dec 2023). This indicates business expansion and growth.
- Profitability: Profit after tax (PAT) has also increased year-over-year (0.5%), demonstrating sustained profitability.
- Strong Net Worth: Net worth has grown significantly (15.1%) year-over-year, suggesting a healthy financial position.
Indegene Limited IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 18.4% |
| Debt/Equity | 3.1 |
| RoNW | 12.9% |
| P/BV | 2.93 |
IPO – SWOT Analysis
Strengths
- Focus on Underbanked Segment: Aadhar HFL caters to the underserved EWS and LMI segments, with a high potential for growth as financial inclusion efforts expand in India.
- Strong Track Record: The company has a history of consistent growth in revenue, profitability, and net worth.
- Widest Network: Aadhar HFL boasts the highest AUM and net worth among its peers, indicating a significant market presence and brand recognition.
- Experienced Management: Backing by Blackstone, a leading global investment firm, suggests access to expertise and financial resources.
Weaknesses
- Interest Rate Sensitivity: As a housing finance company, Aadhar HFL’s profitability is vulnerable to fluctuations in interest rates. Rising interest rates can impact borrower repayments and reduce margins.
- Macroeconomic Dependence: The company’s performance is tied to the overall health of the Indian economy, particularly the real estate sector. An economic slowdown could lead to decreased loan demand and higher defaults.
- Limited Product Portfolio: Aadhar HFL primarily focuses on small-ticket mortgages, potentially limiting revenue diversification opportunities.
Opportunities
- Government Initiatives: Government policies promoting affordable housing and financial inclusion can create new growth opportunities for Aadhar HFL.
- Digitalization: Leveraging technology to streamline loan application processes and reach a wider customer base can enhance efficiency and growth.
- Product Diversification: Expanding the product portfolio to include other loan offerings like renovation loans or loans for higher-income segments can diversify revenue streams.
Threats
- Competition: The housing finance sector is witnessing increasing competition from established players, new entrants, and non-bank financial institutions (NBFCs) vying for market share.
- Regulatory Changes: Changes in government regulations or housing loan policies could impact Aadhar HFL’s business model and profitability.
- Asset Quality Deterioration: Economic downturns or rising interest rates could lead to an increase in non-performing assets (NPAs), impacting the company’s financial health.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Aadhar Housing Finance Limited IPO :
Peers:
- Major Players:
- Government-Backed Institutions:
- National Housing Bank (NHB): A government-owned institution that provides liquidity to housing finance companies and promotes housing finance in India.
- Housing and Urban Development Corporation Limited (HUDCO): A public sector enterprise under the Ministry of Housing and Urban Affairs, providing housing finance and promoting housing development.
- Private Housing Finance Companies:
- Aavas Financiers Limited: A leading HFC focused on the affordable housing segment, catering to EWS and LMI borrowers with a significant branch network.
- Repco Home Finance Limited: Another prominent HFC with a focus on affordable housing loans and a presence in both urban and rural areas.
- Grameen Capital India Limited: A microfinance institution expanding into affordable housing finance, targeting low-income borrowers in rural and semi-urban regions.
Considerations for Competitive Analysis
- Target Segment: Analyze the specific customer segments each company focuses on. Does Aadhar HFL have a wider reach within the EWS and LMI segments compared to its peers?
- Geographic Presence: Compare the geographic reach of each company. Does Aadhar HFL boast a more extensive branch network, especially in rural and underbanked areas?
- Product Portfolio: Analyze the range of products offered by each competitor. Does Aadhar HFL solely focus on small-ticket mortgages, or do some peers offer additional loan products?
- Financial Performance: If financial data for the competitors is publicly available (annual reports), compare revenue growth, profitability margins, asset quality (NPA ratios), and capital adequacy ratios to assess their relative financial strength
Aadhar Housing Finance Limited IPO GMP
- Grey market premium as on 10-05-2024 = Rs 54/ Share
Disclaimer:
- IPO Grey Market Premium (Aadhar Housing Finance Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Aadhar Housing Finance Limited IPO
🔴 Live Subscription Status 🔴
10/05/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 1,90,03,176 | 0.35 | 2.15 | 72.78 |
| Non Institutional Investors(NIIs) | 1,42,52,381 | 0.63 | 2.04 | 16.50 |
| Retail Individual Investors(RIIs) | 3,32,55,556 | 0.44 | 1.00 | 2.44 |
| Employee | 2,39,726 | 2.16 | 3.80 | 6.49 |
| Total | 6,67,50,839 | 0.46 | 1.56 | 25.48 |
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