The initial public offering (IPO) of Aadhar Housing Finance Limited, which commenced subscription on Wednesday, aims to raise Rs 3,000 crore. This housing finance company, supported by Blackrock, is offering its shares at a price range of Rs 300 to Rs 315 per share.
Interested investors have until May 10 to subscribe to this IPO, with a minimum lot size of 47 shares requiring a minimum investment of Rs 14,805. The basis of share allotment is set to be finalized by May 13, with refunds expected to commence on May 14. Aadhar Housing Finance is slated to make its debut on the stock exchanges on May 15.
Analysts like Rajan Shinde, Research Analyst at Mehta Equities Ltd, have noted the company's commendable growth in revenue from operations and net profit in FY 2023 by 18.2% and 22.5% respectively, giving it a 'Subscribe' rating. Shinde highlighted the company's expanding presence in tier 4 and tier 5 towns as indicative of promising growth prospects, recommending investors to subscribe to the issue for the long term.
As of May 8, 2024, the grey market premium (GMP) for Aadhar Housing Finance IPO stands at Rs 70, suggesting an estimated listing price of Rs 385 per share (price band + GMP), indicating a potential gain of 22.22% per share.
Aadhar Housing Finance Limited, established in 2010, aims to utilize the net proceeds from the IPO for future capital requirements in lending activities and general corporate purposes. The company focuses on providing housing finance solutions to lower-income segments, operating through deep-impact branches and sales offices, particularly targeting customers in India's tier 4 and tier 5 towns.
Financially, Aadhar Housing Finance Limited has demonstrated promising growth, with revenue increasing by 18.22% and profit after tax (PAT) rising by 22.22% between the financial years ending March 31, 2023, and March 31, 2022.
