The initial public offering (IPO) of Blackstone-backed Aadhar Housing Finance saw a subscription rate of 62 percent on the second day of bidding on May 9. Investors had bid for 4.32 crore equity shares, whereas the offering comprised 7 crore equity shares.
Non-institutional investors led from the front, buying 81 percent of the issue reserved for them. Retail investors bought 57 percent of the allotted quota, followed by qualified institutional buyers of QIBs who subscribed 53 percent of their portion.
The IPO consists of a fresh issue of shares valued at Rs 1,000 crore and an offer-for-sale (OFS) worth Rs 2,000 crore by promoter BCP Topco VII Pte, an affiliate of Blackstone Group. At the upper end of the price range, the company's valuation exceeds Rs 13,000 crore. The price band for the offering, scheduled to close on May 10, has been fixed at Rs 300-315 per share.
The company provides mortgage loans to the low-income housing, focusing primarily on small-ticket loans. As of December 2023, the average loan size stood at Rs 10 lakh, with an average loan-to-value ratio of 58.3 percent. During the first nine months of FY24, salaried individuals contributed 57.2 percent of its Assets Under Management (AUM), with the remaining 42.8 percent attributed to the self-employed segment.
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