Aadhaar Housing Finance Fixes IPO Price Band at Rs. 300-315 Per Equity Share

Aadhar Housing Finance sets IPO price band of Rs 300-315 per share, aiming to raise Rs 3,000 crore. The IPO consists of a fresh issue and an offer for sale by Blackstone. Proceeds will fund growth and general corporate purposes. The issue opens for subscription on May 8-10, with half reserved for QIBs, 35% for retail, and 15% for non-institutional investors. Aadhar focuses on low-income housing loans and has a network of 471 branches. Blackstone's support and the strong mortgage market drive the company's growth potential.

Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, on Thursday said it has fixed a price band of Rs 300 to Rs 315 a share for its Rs 3,000-crore initial public offering.

The initial share sale will be open for public subscription during May 8-10 and the bidding for anchor investors will open for a day on May 7, the company said in a statement.

This will be the third maiden public issue opening next week after TBO Tek and Indegene. Aadhar Housing Finance's initial public offering (IPO) is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.

Currently, BCP Topco holds a 98.72 per cent stake in Aadhar Housing Finance and ICICI Bank owns a 1.18 per cent stake.

The company plans to utilise Rs 750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending and a portion will also be used for general corporate purposes.

''The listing is a significant milestone for Aadhar Housing Finance and its transformation is a great example of what we do best: building businesses that build India. We brought our scale, network, and best global practices to grow the business, and empowered the company in digitising its processes, end-to-end from origination to collection,'' Amit Dixit, Head of Private Equity Asia at Blackstone, said.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Earlier this month, Aadhar Housing Finance received Sebi's go-ahead to float the IPO.

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The company is an HFC focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers, who require small-ticket mortgage loans. It has a network of 471 branches, including 91 sales offices, as of September 30, 2023. The company benefits from the resources, relationships and expertise of Blackstone, one of the world's leading investment firms.

ICICI Securities, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd and SBI Capital Markets are the book-running lead managers to the issue.

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