Ahead of IPO, Aadhar Housing Finance Mobilizes Rs 898 Crore from Anchor Investors

Aadhar Housing Finance raised Rs 898 crore from anchor investors ahead of its IPO. The IPO includes a fresh issue of equity shares worth Rs 1,000 crore and an OFS of Rs 2,000 crore. The issue, priced between Rs 300-315, opens for public subscription on May 8-10. The company plans to use the proceeds for future lending and general corporate purposes. Aadhar Housing Finance is backed by Blackstone and focuses on the low-income housing segment.

Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, on Tuesday said it has mobilised Rs 898 crore from anchor investors, a day before the launch of its initial public offering (IPO).

The company has decided to allot 2.85 crore equity shares to 61 funds at Rs 315 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website.

At this price, the company has garnered Rs 897.98 crore, it added.

Morgan Stanley Asia (Singapore) Pte Ltd, Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, Theleme India Master Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF and Quant MF are among the anchor investors.

The issue, with a price band of Rs 300 to Rs 315 a share will be open for public subscription during May 8-10.

The Rs 3,000-crore IPO of Aadhar Housing Finance is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an OFS (offer for sale) 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.

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

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.

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 housing finance company is 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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