Aadhar Housing Finance IPO – Price band to risk factors, all you need to know

May 7, 2024

Credit: Aadhar Housing Finance

Aadhar Housing Finance Limited IPO

Mumbai-based Aadhar Housing Finance’s initial public offering (IPO) opens on Wednesday, May 8, and will close on Friday, May 10.

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Price band

Aadhar Housing Finance has fixed a price band of ₹300-₹315 per share for its public issue.

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About the company

Aadhar Housing Finance is a Mumbai-based housing finance company that is aimed at the lower-income segment. It is primarily focused on tier 4 and tier 5 towns.

Credit: Aadhar Housing Finance

IPO size

Aadhar Housing Finance is looking to raise ₹3,000 crore from the current IPO. This includes a fresh issue of ₹1,000 crore and an offer for sale (OFS) component of ₹2,000 crore.

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Lot size

Investors can bid for a minimum of 47 shares and in multiples of 47 shares thereafter.

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Current operations

Aadhar Housing Finance currently has 471 branches and 91 sales offices across 20 states and union territories.

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Financials

The company’s income was ₹2,043.52 crore in FY23, up from ₹1,728.56 crore in FY22. The company reported a net profit of ₹545.34 crore in FY23, up from ₹446.20 crore in FY22.

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Risk factors

As the company focuses on the low-income segment, there is a higher risk of default. The company currently has negative cash flow and this is expected to continue for the next few years.

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Business risks

As the government and the central bank tighten rules around non-banking financial corporations (NBFCs), the company may face stringent regulations and compliance.

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Disclaimer

The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

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