Aptus Value Housing Finance files DRHP to raise funds via IPO

15 May , 2021 By : Kanchan Joshi

NEW DELHI: South India based Aptus Value Housing Finance India Ltd has filed a draft red herring prospectus (DRHP) with Securities Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).

Aptus has been founded by M Ananda, former CEO and director of the Financial Services Businesses in Murugappa Group.

The IPO comprises a fresh issue of Rs500 crore and an offer for sale of 64.59 million by its current shareholders and promoters.

An offer for sale comprises sale of 2.5 million shares by Padma Anandan, 5 lakh shares by Westbridge Crossover Fund LLC, 19.76 million shares by Aravali Investment Holdings, 27.88 million shares by JIH II LLC, 9.99 million shares by Ghiof Mauritius, and 3.72 million shares by Madison India Opportunities IV.

About 55% of Aptus is held by private equity investors - Westbridge Capital, Sequoia Capital, Steadview Capital and Malabar Investment Advisors.

ICICI Securities, Citigroup Global Markets, Edelweiss Financial Services and Kotak Mahindra Capital are acting as advisors on the IPO.

The object of the offer is to augment the lender's capital base to meet future capital requirements.

As of December 2020, the company had 181 branches with total assets under management of Rs37.91 billion.

For the fiscal year March 2020, it reported total income of Rs523.72 crore versus Rs337.11 crore a year ago. Net profit for the fiscal stood at Rs211.01 crore from Rs111.56 crore a year ago.

It disbursed loans amounting to Rs8,788.48 million for the nine months ended December 31, 2020 and Rs12,709.80 million for FY20.

As of December 2020, it’s gross non performing assets as a percentage of gross loans stood at Rs0.77% versus 0.7% in March 2020. Net NPA as of December 2020 was at 0.57%, compared to 0.54% in march 2020. Capital adequacy ratio stood at 75.03% versus 82.49% a year ago.

The lender is an entirely retail focused housing finance company primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India.