May 7, 2024
By: Sourabh JainMumbai-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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Aadhar Housing Finance has fixed a price band of ₹300-₹315 per share for its public issue.
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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.
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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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Investors can bid for a minimum of 47 shares and in multiples of 47 shares thereafter.
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Aadhar Housing Finance currently has 471 branches and 91 sales offices across 20 states and union territories.
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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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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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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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