Aadhar Housing Finance IPO: Should you bid for this Rs 3,000 cr offer?
IPO of Aadhar Housing Finance opened for subscription today. Ahead of the issue opening, the company raised Rs 897 crore from anchor investors.
The IPO comprises a combination of a fresh issue of shares worth Rs 1,000 crore and an offer-for-sale (OFS) of shares worth Rs 2,000 crore by promoter BCP Topco.
Aadhar Housing intends to utilize the net proceeds for meeting future capital requirements related to onward lending and general corporate purposes.
Aadhar Housing Finance IPO preview
Analysts advised investors to subscribe to the issue as the company boasts of strong financial performance reflecting consistent growth over the years.
«While the IPO valuation of 22.8x P/E and 3.36x P/BV might appear fair, Aadhar's high reliance on borrowing necessitates a cautious approach. Therefore, we recommend this IPO only for high-risk investors seeking long-term exposure to the affordable housing sector,» said Swastika Investmart.
Aadhar Housing Finance IPO price band
The company has fixed a price band of Rs 300-315 per share, where investors can bid for 47 shares in one lot. At the upper end of the price band, the valuation exceeds Rs 13,000 crore.
Also Read: Aadhar Housing Finance IPO opens Wednesday. 10 things to know before subscribing to the issue
Other details
The company is a HFC focused on the low-income housing segment, with a ticket size of less than Rs 15 lakh. It had the highest AUM and net worth among analyzed peers in the six months that ended September 2023.
The financier offers a range of
