Shares of Aadhar Housing Finance will debut on Dalal Street on Wednesday after garnering significant attention from investors.
Aadhar Housing Finance IPO received an overall subscription of 26.76 times. The public issue was subscribed 2.58 times in the retail category, 76.42 times in the Qualified Institutional Buyer (QIB) category, and 17.33 times in the Non-Institutional Investor (NII) category.
Allotment for Aadhar Housing Finance IPO was completed on May 13 and shares will be credited to demat accounts on Tuesday, May 14. The refund process for those who have not received their shares will also be finalised today.
The IPO’s price band was fixed at Rs 300-315 per share.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd expects a listing gain of 10-15% for Aadhar Housing Finance IPO, citing reasonable valuations and decent subscription.
“Considering reasonable valuations, we expect a decent ~10-15% listing gain against the issue price of Rs 315 per share. Decent listing is justified as Aadhar Housing Finance has maintained reasonable asset quality and healthy return ratios,” said Tapse.
“Its increasing penetration into tier 4 and tier 5 towns suggests promising growth prospects in the longer term. Hence, considering the above parameters, we are recommending allotted investors to ‘HOLD’ for long term perspective,” he said.
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Shivani Nyati, Head of Wealth, Swastika Investmart Ltd said that while the IPO garnered a healthy subscription of 26 times, the current grey market premium (GMP) sits at Rs 48, translating to a potential listing gain of approximately 15% over the issue price.
“With the recent market volatility and the company’s inherent challenges, investors should consider a long-term perspective and maintain a healthy risk appetite,” said Nyati.
Aadhar Housing Finance IPO latest GMP
The IPO’s grey market premium (GMP) stands at Rs 50 as of May 15, 2024, at 5:02 PM.
Based on the upper price band of Rs 315 per share, the estimated listing price is projected to be Rs 365, indicating a potential gain of 15.87% per share.
Aadhar Housing Finance IPO details
The book running lead managers for the Aadhar Housing Finance IPO include ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, and SBI Capital Markets Limited.
The company intends to utilise the net proceeds from the IPO to meet future capital requirements for lending activities and for general corporate purposes.
Established in 2010, Aadhar Housing Finance Limited focusses on providing housing finance solutions to the lower-income segments.
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Financially, Aadhar Housing Finance Limited has shown promising growth, with revenue increasing by 18.22% and profit after tax (PAT) rising by 22.22% between the financial years ending March 31, 2023, and March 31, 2022.
