Aadhar Housing Finance IPO receives tepid response, subscribed 43% on Day 1

Aadhar Housing Finance's IPO received 43% subscription on its first day, with non-institutional investors subscribing 60%, retail investors 41%, and QIBs 33%. The IPO includes fresh equity issuance worth Rs 1,000 crore and OFS of Rs 2,000 crore by Blackstone affiliate BCP Topco. The company secured Rs 898 crore from anchor investors and plans to use proceeds for lending and general purposes. Aadhar Housing Finance targets low-income housing segments, offering mortgage loans and has a network of 471 branches. Blackstone supports the company with expertise and resources.

The Initial Public Offer (IPO) of Aadhar Housing Finance, which is backed by private equity major Blackstone, received 43 per cent subscription on the first day of bidding on Wednesday.

The Rs 3,000 crore IPO got bids for 3,04,53,979 shares against 7,00,89,373 shares on offer, as per NSE data.

The quota for non-institutional investors received 60 per cent subscription while Retail Individual Investors (RIIs) category got subscribed 41 per cent. The portion for Qualified Institutional Buyers (QIBs) fetched 33 per cent subscription.

The 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 IPO is in a price range of Rs 300-315 a share.

Aadhar Housing Finance Ltd on Tuesday said it has mobilised Rs 898 crore from anchor investors.

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.

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, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the managers to the offer.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)