Aadhar Housing Finance IPO soars 25.49 times on final day of subscription

Aadhar Housing Finance's IPO received 25.49 times oversubscription, with QIBs subscribing 72.78 times, non-institutional investors 16.50 times, and retail investors 2.46 times. The IPO comprised a fresh issue of Rs 1,000 crore and an OFS of Rs 2,000 crore by Blackstone Group Inc. affiliate BCP Topco VII Pte Ltd. Aadhar Housing Finance plans to use Rs 750 crore for onward lending and general corporate purposes. The company offers mortgage loans to economically weaker and low-to-middle-income customers.

The initial public offer of Aadhar Housing Finance, which is backed by private equity major Blackstone, received 25.49 times subscription on the closing day of the share-sale on Friday.

The Rs 3,000 crore initial share-sale received bids for 1,78,65,45,247 shares against 7,00,89,373 shares on offer, according to data available with the NSE.

The Qualified Institutional Buyers (QIBs) part fetched 72.78 times subscription and the portion for non-institutional investors got subscribed 16.50 times. The quota for Retail Individual Investors (RIIs) attracted 2.46 times subscription.

The IPO of Aadhar Housing Finance is a combination of 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.

The three-day IPO had 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.)