Aadhar Housing Finance files DRHP with SEBI for an IPO

Aadhar Housing Finance Limited has filed a draft red herring prospectus (DRHP) proposing an IPO comprising fresh issue of Equity Shares of up to Rs. 10000 million and an Offer for Sale of up to Rs. 40,000 million by BCP Topco VII Pte. Ltd. (Promoter Selling Shareholder). Since June 2019, BCP Topco, which is the Promoter, and is an affiliate of funds managed and/or advised by affiliates of Blackstone Group Inc (collectively “Blackstone”), currently holds 98.7% of the pre-Offer issued, subscribed and paid-up Equity Share capital.

The Company proposes to utilize the Net Proceeds towards the following: (i) To meet future capital requirements towards onward lending; and (ii) General corporate purposes.

The Company is an HFC focused on the low income housing segment (ticket size less than ₹1.5 million) in India and we had the highest AUM and net worth among our analyzed peers in six months ended September 30, 2023, according to CRISIL. It offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition. It has an extensive network of 471 branches* including 91 sales offices, as of September 30, 2023.

In addition, according to the peer set analyzed by CRISIL, it had the highest number of live accounts in FY2023 (Source: CRISIL Report). In addition, it had a presence in 20 states and union territories, which is the highest among the peers analyzed by CRISIL as of March 31, 2023 (Source: CRISIL Report). The Company is a retail-focused HFC focused on the low income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans. The average ticket size of the Company’s loans was ₹0.9 million with an average loan-to-value of 57.6% and 58.1%, as of September 30, 2022 and September 30, 2023, respectively.

The Company benefits from the resources, relationships and expertise of Blackstone, one of the world’s leading investment firms.

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the BRLMs to the issue.