Aptus Value Housing IPO: Analysts give a thumbs up on last three years’ strong performance
- Aptus Value Housing’s assets under management has grown 34.54% from FY19-FY21 to ₹4,067 crore.
- The IPO bidding for the home loan company opened Tuesday and will close on August 12.
- The company is looking to raise ₹2,780 crore through the public issue of shares.
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The Chennai-based company is a retail-focused housing finance company that primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India.
The company is looking to raise ₹2,780 crore through the public offering, out of which ₹500 crore will be fresh issue and offer for sale (OFS) up to ₹2,280 crores from existing shareholders.
While the IPO has opened for subscription today and will close on August 12, analysts have been recommending investors to subscribe to the IPO looking at the company’s strong assets under management (AUM) growth in the last three financial years.
The company’s AUM has grown 34.54% during FY19-FY21 to ₹4,067 crore and it is also considered as one of the largest housing finance companies in south India, as per credit rating agency CRISIL in terms of AUM.
“Aptus has posted strong growth in both net interest income and net profits of 46.2% and 54.7% between FY19-FY21. Despite the COVID-19 crisis, the company’s asset quality has remained largely stable. Given strong growth prospects, and industry leading return ratios we recommend a subscribe rating on the issue,” said a report by Angel Broking.
While the progress in affordable housing in India has been rather slow, Aptus has crafted its own success story through a combination of identifying the right customer profile, the right collateral and heavy usage of analytics, systems and process, said a report by Antique Stock Broking as it recommended the IPO for long term as it sees limited upside in shares in near term.
“While Aptus remains one of the best stories in the affordable housing space, we believe that investors will have to look beyond FY23 for generating meaningful returns,” added the report.
As of March 31, 2021, the company had a network of 190 branches covering 75 districts in southern India. Among the peer group, Aptus had the largest branch network in south India with 52% of AUM in Tamil Nadu.
“Aptus is a fast growing home financier. Utilising technology, the company focuses on enhancing operational efficiency, return ratios and asset quality,” said a report by ICICIdirect.
The housing finance company will use the IPO proceeds of the fresh issue towards augmenting the capital base to meet its future capital requirements.
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