Aadhar Housing Finance
Book Building issueMainboard₹3,000 Cr issue
-0.22%
Listing gain over issue price
Issue size
₹3,000 Cr
1 lot at cut-off
₹14,805
Lot size
47shares
Open
08 May 2024
Close
10 May 2024
Allotment
13 May 2024
Listing
15 May 2024
Listing performance
Issue price
₹315
Listed at
₹314.30
Listing-day close
₹329.55
Latest price
₹440.10
Close on 23 Oct 2026
Listing gain
-0.22%
Return since issue
+39.71%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 May 2024 – 10 May 2024
- Listing date
- 15 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹315 per share
- Lot size
- 47 shares
- Issue type
- Book Building issue
- Total issue size
- ₹3,000 Cr
- Market cap at offer price
- ₹13,435 Cr
- Promoter holding
- 98.72% → 76.48% pre-issue → post-issue
- ISIN
- INE883F01010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- 2nd floor, No.3, JVT Towers, 8th‚ Main Road, Sampangi Rama Nagar, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 2,85,04,761 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 47 shares per lot, in multiples, at ₹315
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 47 | ₹14,805 |
| Retail (max) | 13 | 611 | ₹1,92,465 |
| S-HNI (min) | 14 | 658 | ₹2,07,270 |
| S-HNI (max) | 67 | 3,149 | ₹9,91,935 |
| B-HNI (min) | 68 | 3,196 | ₹10,06,740 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
2,85,04,761
Anchor portion
₹898 Cr
at ₹315 per share
Valuation and performance
Valuation at offer price
₹315 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.81 | 17.13 |
| P/E (×) | 22.81 | 18.39 |
| Price to book (×) | 2.93 | — |
| Market cap | — | ₹13,435 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 12.90%
- Debt / equity
- 3.10
- NAV per share
- ₹107.60
- Price to book
- 2.93
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Aadhar Housing Finance
Aadhar Housing Finance Limited, originally incorporated as 'Vysya Bank Housing Finance Limited' in 1990 and later renamed Aadhar Housing Finance Limited after a merger in 2017, is a housing finance company specializing in providing mortgage-related loan products to the low-income housing segment in India. According to CRISIL, the company had the highest asset under management and net worth among analyzed peers in recent periods. As of December 31, 2023, the company operates an extensive network of 487 branches including 109 sales offices across India. The company primarily generates revenue through interest income on housing loans to retail borrowers, with borrowers occupying salaried and self-employed segments.
Company Analysis
from RHPAadhar Housing Finance Limited is a housing finance company focused on low-income housing loans (ticket size less than ₹1.5 million) in India, operating through a network of branches and sales offices.
Aadhar Housing Finance Limited, originally incorporated as 'Vysya Bank Housing Finance Limited' in 1990 and later renamed Aadhar Housing Finance Limited after a merger in 2017, is a housing finance company specializing in providing mortgage-related loan products to the low-income housing segment in India. According to CRISIL, the company had the highest asset under management and net worth among analyzed peers in recent periods. As of December 31, 2023, the company operates an extensive network of 487 branches including 109 sales offices across India. The company primarily generates revenue through interest income on housing loans to retail borrowers, with borrowers occupying salaried and self-employed segments.
housing financefinancial servicesmortgage lending
Objects of the Issue
- To meet future capital requirements towards onward lending ₹7,500 million p.20
- General Corporate Purposes [●] million p.20
- Estimated Offer related expenses in relation to the Fresh Issue to be borne by the Company [●] million p.20
- Meeting future capital requirements towards onward lending ₹10,000 million p.74
- General corporate purposes p.54
- To meet future capital requirements towards onward lending ₹7,500 million p.98
- General corporate purposes [●] million p.98
- Not specified in this DRHP section - document appears to be Part 4 (pages 146-186) which focuses on business overview and does not contain 'Objects of the Offer' section
- Not explicitly stated in this section - to be determined from Objects of Issue section in full document
Issue Structure
- Total Issue
- Up to ₹30,000 million
- Fresh Issue
- Up to ₹10,000 million of Equity Shares of face value of ₹10 each
- Offer for Sale
- Up to ₹20,000 million of Equity Shares by BCP Topco VII Pte. Ltd.
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company generates revenue primarily through interest income on housing and other property loans extended to retail borrowers. It sources funds through borrowings from banks, financial institutions, National Housing Bank (NHB), debt securities, and deposits. The company also earns commission income from co-lending and loan asset assignment arrangements. As a housing finance company, it generates net interest income from the spread between the cost of borrowing and the yield on its loan book.
Business Segments
Provides mortgage-related loan products to retail borrowers in the low-income housing segment with ticket sizes less than ₹1.5 million
Housing loans to borrowers with income up to ₹0.3 million p.a.
Housing loans to borrowers with income above ₹0.3 million to ₹0.6 million p.a.
Housing loans to borrowers with income above ₹0.6 million to ₹1.8 million p.a.
Housing loans to borrowers with income above ₹1.8 million p.a.
Provides housing finance products with ticket size less than ₹1.5 million to economically weaker sections and lower income segments, serving both salaried and self-employed borrowers
Loans for purchase and self-construction of residential properties, home improvement and extension loans, balance transfer of existing loans from other lending institutions, and loans for purchase of residential plots
Loans against residential and commercial property, loans for purchase/construction of non-residential property, and Utkarsh loans for low and medium income individuals
Provides long-term financing for purchase and construction of residential houses
Provides loans for repair, upgrading and other mortgage-related purposes on residential and non-residential properties
Solicits and procures insurance business for all classes of insurance
Retail and institutional distribution of mutual fund units and other financial products
Provides loans to individuals for purchase, construction, repair and renovation of residential property
Provides loans against property and other mortgage-based lending
The Group operates only in one Operating Segment i.e Housing Finance business - Financial Services and all other activities are incidental to the main business activity. The Group provides housing loans, loans against property, home improvement loans, and other mortgage-related products to retail customers.
Provides mortgage loans to economically weaker and low-to-middle income customers for housing and other property purposes
Assigns housing and other property loan receivables to banks and financial institutions to optimize funding, liquidity and capital management
Provides insurance services and servicing fees in direct assignments as corporate agent
SWOT Analysis
Strengths
- • Market leader in low-income housing segment with highest AUM and net worth among analyzed peers(p.20)
- • Extensive distribution network covering 487 branches across India(p.20)
- • Robust underwriting, collections and monitoring systems(p.154)
- • Focused on underserved low-income housing segment with 95% of estimated housing shortage(p.46)
- • Diversified geographic presence across 10 states with largest share in UP (13.6%) and Maharashtra (14.0%)(p.48)
- • Strong capital position with CRWAR well above regulatory minimum of 15%(p.47)
- • Consistent revenue and profit growth with AUM nearly doubling from ₹133,271 million in FY2021 to ₹198,651.6 million as of December 31, 2023(p.46)
- • Maintained AA/Stable credit ratings across multiple instruments and agencies(p.51)
- • Substantial customer base of 57.2% salaried and 42.8% self-employed individuals as of December 31, 2023(p.46)
- • Largest AUM and net worth among peer HFCs in low-income housing(p.104)
- • Seasoned business model with strong resilience(p.104)
- • Extensive branch and sales network for loan sourcing and servicing(p.104)
- • Robust systems and processes for asset quality management(p.104)
- • Access to diversified and cost-effective long-term financing(p.104)
- • Experienced, cycle-tested management team(p.104)
- • Market leader in low-income housing segment with highest AUM and net worth among peers(p.161)
- • Extensive geographic diversification reducing concentration risk(p.159)
- • Strong and resilient business model through various economic cycles(p.162)
- • Diversified customer base with mix of salaried and self-employed borrowers(p.162)
- • Highest collection efficiency among peers at 101% as of March 2023(p.155)
- • Strong credit ratings from multiple agencies(p.159)
- • Highest branch count (479 branches) and second highest employee count among peers as of FY23(p.153)
- • Support from Blackstone providing resources and expertise(p.167)
- • Established RBI regulatory framework enabling co-lending partnerships(p.191)
- • Scale-based regulatory structure providing tiered compliance framework(p.191)
- • Refined internal audit requirements enhancing governance(p.192)
- • Growing loan portfolio with strong AUM expansion(p.238)
- • Controlled asset quality with manageable NPA levels(p.239)
- • Improved profitability and returns on equity(p.242)
- • Diversified funding sources including debt securities and borrowings(p.251)
- • Strong net interest margin expansion(p.243)
- • Diversified customer base across income segments(p.238)
- • Geographic diversification across multiple states(p.238)
- • Highest AUM and net worth among peer HFCs(p.342)
- • Widest geographical presence with 20 states/UTs(p.342)
- • Highest number of live accounts among peers(p.342)
- • Strong experienced management with 25 years average experience(p.344)
- • Access to Blackstone's resources and expertise(p.344)
- • Consistent PAT growth at 28.8% CAGR FY2021-FY2023(p.344)
- • Technology-enabled underwriting and monitoring systems(p.343)
- • Diversified funding sources with 100% long-term borrowings(p.344)
- • Controlled operating expense ratio with economies of scale(p.349)
- • Low average LTV ratio enabling healthy capital ratio(p.348)
- • Strong business growth in AUM and customer base(p.352)
- • Improved productivity metrics per branch(p.349)
- • Capital adequacy well above regulatory requirements(p.348)
Weaknesses
- • Erstwhile promoters under regulatory investigation by Enforcement Directorate(p.32)
- • High dependence on debt financing with restrictive covenants(p.37)
- • Rising non-performing assets post-RBI's November 2021 clarification(p.35)
- • Reliance on accuracy of borrower information and third-party data(p.33)
- • All premises on leased or licensed basis with no asset ownership(p.40)
- • 42.8% of AUM from informal self-employed borrowers with unverified income(p.34)
- • Negative operating cash flows in recent periods(p.34)
- • High dependence on DSAs and Aadhar Mitras for customer acquisition (66.5% of new customers in 9M FY2024)(p.50)
- • Concentrated customer base with limited control over recovery in insolvency proceedings(p.46)
- • High concentration in low-income housing segment creates vulnerability to adverse developments in this segment(p.46)
- • History of delays in statutory payment obligations including EPF, ESIC and income tax(p.56)
- • Significant contingent liabilities of ₹143.6 million as of December 31, 2023 related to income and indirect tax matters(p.54)
- • Declining CRWAR from 44.1% in FY2021 to 39.7% as of December 31, 2023, though still above regulatory minimum(p.47)
- • High debt to net worth ratio requiring capital support(p.100)
- • Declining CRWAR ratio may reduce in future due to regulatory changes(p.100)
- • Management flexibility over use of Net Proceeds creates execution risk(p.48)
- • High reliance on co-lending arrangements with banks for capital and funding(p.169)
- • Dependence on NHB refinancing for cost-effective long-term funds(p.167)
- • Does not own branches, sales offices and key properties; dependent on leases(p.33)
- • Significant exposure to informal sector customers requiring specialized credit assessment(p.162)
- • Reliance on third-party sourcing channels (DSAs and Aadhar Mitras) for customer acquisition(p.173)
- • Regulatory burden from extensive compliance requirements(p.192)
- • Mandatory early warning signals framework implementation adding operational complexity(p.193)
- • Stringent IT outsourcing oversight requirements(p.193)
- • High leverage with debt-to-equity ratio of 3.3(p.242)
- • Increasing cost to income ratio(p.242)
- • Concentration of self-employed borrowers with higher default risk(p.239)
- • Title deed issues with immovable properties not in company name(p.257)
- • Statutory compliance delays regarding deposits(p.259)
- • Deteriorating capital adequacy from 45.4% to 39.7%(p.345)
- • Rising cost of borrowing from 7.0% to 7.6% in 9M FY2024(p.345)
- • Increased debt to equity ratio management pressure(p.345)
- • High reliance on customer collections for liquidity(p.347)
- • Rising employee costs with expansion(p.353)
- • Rising capital requirements relative to net owned funds(p.348)
- • Increasing GNPA ratios recently(p.348)
- • Multiple contingent liabilities from tax disputes(p.364)
Opportunities
- • Growing low-income housing finance market projected to reach ₹5.4-5.7 trillion by March 2026(p.20)
- • Co-lending arrangements to leverage bank balance sheets and expand reach(p.39)
- • Optimize borrowing costs and reduce operating expenses(p.161)
- • Government initiatives like Pradhan Mantri Awas Yojana supporting housing sector development(p.57)
- • Expansion into new regions and markets to grow customer base and diversify presence(p.49)
- • Potential growth from increasing home ownership in India particularly in economically weaker and low-to-middle income segments(p.57)
- • Use of Net Proceeds from Fresh Issue for onward lending to expand loan portfolio(p.54)
- • Large housing shortage in low-income segment driving demand(p.132)
- • Growth in low-income housing loans market segment(p.137)
- • Rising urbanization and nuclearization driving housing demand(p.127)
- • Favorable demographics with young population(p.127)
- • Expansion of financial inclusion and credit penetration(p.127)
- • Government support through affordable housing initiatives(p.137)
- • Low mortgage penetration in India relative to other emerging markets(p.167)
- • Government initiatives promoting affordable housing through PMAY and other schemes(p.161)
- • Expansion of distribution network in semi-urban and rural markets(p.168)
- • Strong growth trajectory of mini HFCs outpacing overall HFC market(p.146)
- • Increasing digital adoption enabling cost reduction and operational leverage(p.167)
- • Co-lending model enabling larger customer base with lesser capital(p.169)
- • Penetration of existing market in underserved tier 2 and tier 3 towns(p.164)
- • NHB refinance schemes enabling access to long-term capital(p.191)
- • Affordable housing focus through NHB-designated schemes(p.191)
- • Digital lending expansion with regulated frameworks(p.192)
- • Asset securitization and transfer capabilities for portfolio optimization(p.194)
- • Government-backed housing finance expansion through PMAY scheme(p.241)
- • Growth in other mortgage loan segment(p.240)
- • Expansion through multiple sourcing channels(p.240)
- • Rising demand from middle-income group segment(p.238)
- • Potential for market share gain through competitive pricing(p.240)
- • Increased NHB refinancing penetration(p.347)
- • Expansion of geographical footprint(p.343)
- • Low income housing segment tailwind(p.346)
- • Digital transformation and cost efficiency(p.343)
- • Growing AUM with 23.3% growth in 9M FY2024(p.345)
- • Expansion into underserved low-income housing segment(p.349)
- • Technology-enabled operational improvements(p.349)
- • Internet-driven increased demand for housing finance(p.349)
- • Geographic expansion with growing branch network(p.353)
Threats
- • Highly competitive housing finance industry(p.50)
- • Interest rate volatility and maturity mismatches between assets and liabilities(p.36)
- • Regulatory changes and stricter compliance requirements from NHB and RBI(p.38)
- • Restrictions on loan asset assignments and co-lending arrangements(p.39)
- • Macroeconomic slowdown affecting informal self-employed borrowers' repayment capacity(p.34)
- • Insolvency and Bankruptcy Code may impair debt recovery from customers(p.45)
- • Growth of India's housing finance industry may not be sustainable(p.57)
- • Highly competitive housing finance industry with larger players having superior resources and funding access(p.57)
- • Floating rate loans subject to pre-closure without penalty, creating risk of customer migration to competitors(p.57)
- • Risk of loan defaults due to inadequate credit infrastructure in India compared to developed economies(p.58)
- • Economic slowdown, inflation and interest rate volatility could reduce demand for housing loans(p.59)
- • Government policy changes affecting tax benefits and housing sector priority status could reduce demand(p.52)
- • Potential notified insolvency provisions for individuals could affect recovery of loans from 57.2% of salaried customers(p.46)
- • Pandemic resurgence or natural disasters could impact economic growth and increase customer delinquencies(p.56)
- • Low mortgage penetration compared to developed markets limits growth(p.132)
- • Rising interest rates affecting borrower affordability(p.126)
- • Economic slowdown impacting low-income segment disproportionately(p.135)
- • Increased competition from banks and larger HFCs in low-income segment(p.143)
- • Housing market shift toward higher ticket sizes(p.135)
- • Regulatory pressure on capital ratios limiting growth(p.99)
- • Competitive market with intense competition from other HFCs and banks(p.183)
- • Regulatory changes in capital adequacy, asset classification and lending norms(p.187)
- • Economic cyclicality and sensitivity to macroeconomic conditions affecting customer defaults(p.162)
- • Rising interest rates increasing cost of borrowing(p.166)
- • Property market volatility affecting collateral valuations(p.180)
- • Exposure to fraud and documentation falsification in informal customer segment(p.175)
- • Regulatory restrictions on deposit-taking and public deposit norms(p.190)
- • Regulatory restrictions on loan transfer and securitization(p.194)
- • NPA classification and loss provisioning mandates impacting capital(p.193)
- • Enforcement action and penalty provisions for regulatory violations(p.193)
- • Mandatory disclosure requirements and information security obligations(p.192)
- • Corporate agent registration dependency with IRDAI limits(p.194)
- • Regulatory changes in income recognition and asset classification(p.248)
- • Regulatory oversight of HFCs by NHB and RBI(p.257)
- • Rising interest rates impacting borrowing costs(p.241)
- • Economic uncertainty affecting customer repayment capacity(p.238)
- • Overdues across multiple customer segments(p.257)
- • Statutory tax disputes and compliance liabilities(p.259)
- • Concentration risk in top states(p.238)
- • Economic slowdown impact on housing demand(p.346)
- • Interest rate risk impacting borrowing costs(p.347)
- • Rising GNPA ratio volatility(p.348)
- • COVID-19 pandemic impact on economic conditions(p.346)
- • Real estate price volatility affecting affordability(p.346)
- • Intense competition from larger players with better funding access(p.349)
- • Regulatory changes may increase capital requirements(p.348)
- • Dependence on stable government policy on housing(p.348)
- • Sector liberalization increasing entry barriers erosion(p.349)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| BCP Topco VII Pte. Ltd. | Promoter/Promoter Selling Shareholder | 98.72% | [●]% |
| BCP Topco | Promoter | 98.72% | — |
| BCP Topco VII Pte. Ltd. | Promoter Selling Shareholder | — | [●] |
| BCP Topco | Promoter | 98.72% | — |
| BCP Topco | Promoter | 98.72% | — |
| BCP Topco VII Pte. Ltd. | Holding Company / Promoter | 98.7% | — |
| BCP Topco VII Pte. Ltd. | Holding Company / Promoter | 98.72% | — |
| Centrum Capital Limited | Promoter | — | — |
| BCP Topco VII Pte. Ltd. | Promoter Selling Shareholder | — | — |
Leadership
Om Prakash Bhatt · Non-Executive Chairman
Rishi Anand · Managing Director and Chief Executive Officer
Deo Shankar Tripathi · Executive Vice Chairman
Rajesh Viswanathan · Chief Financial Officer
Harshada Pathak · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Aadhar Housing Finance IPO FAQs
What is the lot size of Aadhar Housing Finance IPO?
The minimum lot size of Aadhar Housing Finance IPO is 47 shares. One lot costs ₹14,805 at the cut-off price.
When does Aadhar Housing Finance IPO open and close?
Aadhar Housing Finance IPO opened for subscription on 08 May 2024 and closed on 10 May 2024.
What is the listing date of Aadhar Housing Finance IPO?
Aadhar Housing Finance IPO listed on 15 May 2024.