Aptus Value Housing's IPO investors lose ₹16 a share on listing but analysts still believe it's a good bet

• Shares of Aptus Value Housing listed at ₹329.95 while the price band was fixed at ₹346-353 per share.
• The IPO was subscribed 17.20 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹16,688 crore.

Shares of Aptus Value Housing made a tepid listing on the National Stock Exchange (NSE) and BSE as the stock listed at 6.53% discount over the issue price band of ₹346-353 apiece.

Post listing, the market capitalisation of the company stood at ₹16,688 crore, according to BSE data.

The shares of Aptus Value Housing were trading at ₹342, lower by 3% at 10.01 a.m., on August 24. However, the grey market had indicated a premium of ₹13-15 on its issue price on the issue price.

The IPO ⁠— open between August 10 and August 12 ⁠— saw good demand from investors. It was subscribed 17.20 times on the last day of the bidding.

The Chennai-based retail-focused housing finance company primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India.

The company was looking to raise ₹2,780 crore through the public offering, out of which ₹500 crore is to be fresh issue and offer for sale up ₹2,280 crores from existing shareholders.

Analysts expected the stock to open with a tepid listing but recommend holding the stock for a long term. “We had given a SUBSCRIBE rating to the IPO from a long term perspective and expect the company to do well in the long run given consistent strong financial performance, industry leading return ratios and good asset quality. Given the recent volatility in the markets there is a likelihood of a tepid listing for the stock tomorrow,” said Jyoti Roy, deputy vice president, equity strategist at Angel Broking.

The company intends to use the IPO proceeds of the fresh issue towards augmenting the capital base to meet its future capital requirements.

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