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Aadhar Housing Finance Ltd. has received approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) for INR 5,000 crore. This move comes after the company filed its initial IPO papers with SEBI in February 2023.
The proposed IPO is a combination of fresh equity issuance and an offer for sale (OFS) of existing shares. Aadhar Housing Finance will issue new equity shares worth INR 1,000 crore. BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc. (Blackstone currently holds a controlling 98.72% stake in Aadhar Housing Finance), will be offering INR 4,000 crore worth of existing shares for sale.
Aadhar Housing Finance is a key player in catering to the housing finance needs of low-income and low-to-middle-income segments in India. The company offers a range of mortgage products to support these segments, including loans for residential property purchase and construction, home improvement and extension projects, and commercial property construction and acquisition
As of September 30, 2023, Aadhar Housing Finance has a wide network of 471 branches, including 91 sales offices, spread across the country. This extensive network allows them to reach a wider customer base. Additionally, the company benefits significantly from the expertise and resources of Blackstone, a leading global investment firm.
This is Aadhar Housing Finance's second attempt at an IPO. In January 2021, the company initially filed draft papers with SEBI aiming to raise INR 7,300 crore. While they received SEBI approval in May 2022, the IPO launch did not materialize. From the fresh issue proceeds of INR 1,000 crore raised through the IPO, Aadhar Housing Finance plans to allocate INR 750 crore to meet future capital requirements for onward lending, with the remaining portion used for general corporate purposes.
Aadhar Housing Finance's IPO signifies the growing importance of affordable housing finance in India. By mobilising funds through this INR 5,000 crore IPO, the company can potentially expand its reach and support the government's vision of "Housing for All" by providing crucial financial assistance to those seeking affordable housing solutions.
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