Aptus Value Housing Finance
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 10 Aug 2021 – 12 Aug 2021
- Listing date
- 24 Aug 2021
- Face value
- ₹2 per share
- Issue price
- ₹353 per share
- Lot size
- 42 shares
- Total issue size
- ₹2,780 Cr
- Market cap at offer price
- ₹17,494 Cr
- Promoter holding
- 74.87% → 62.51% pre-issue → post-issue
- ISIN
- INE852O01025
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Citigroup Global Markets India Pvt.Ltd.
- Registered office
- No.8B, Doshi Towers, 8th Floor, No: 205, Poonamallee High Road, Kilpauk, Tamil Nadu
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 | 2,36,26,500 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 42 shares per lot, in multiples, at ₹353
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 42 | ₹14,826 |
| Retail (max) | 13 | 546 | ₹1,92,738 |
| S-HNI (min) | 14 | 588 | ₹2,07,564 |
| S-HNI (max) | 67 | 2,814 | ₹9,93,342 |
| B-HNI (min) | 68 | 2,856 | ₹10,08,168 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹17,494 Cr |
About Aptus Value Housing Finance
Aptus Value Housing Finance India Limited is a public limited company incorporated on December 11, 2009, and commenced operations on June 25, 2010. It is registered with the National Housing Bank to carry out the business of a housing finance institution without accepting public deposits. The company is entirely retail-focused, serving low and middle-income self-employed customers in the rural and semi-urban markets of India, with particular concentration in Tamil Nadu (52.27% of AUM as of March 31, 2021) and Andhra Pradesh (27.33% of AUM as of March 31, 2021). As of March 31, 2021, 72.05% of the company's AUM (₹29,308.79 million) was from self-employed customers. The company offers home loans for purchase and self-construction of residential property, home improvement and extension loans, loans against property, and business loans where residential real estate is the primary collateral. Gross Loan Assets grew from ₹22,472.33 million as of March 31, 2019 to ₹40,677.62 million as of March 31, 2021, at a CAGR of 34.54%. According to the CRISIL Report, the company had the highest RoA of 5.7% among the Peer Set during financial year 2021 and is one of the largest housing finance companies in south India in terms of AUM.
Company Analysis
from RHPAptus Value Housing Finance is an entirely retail-focused housing finance company primarily serving low and middle-income self-employed customers in rural and semi-urban markets of India, primarily in Tamil Nadu and Andhra Pradesh.
Aptus Value Housing Finance India Limited is a public limited company incorporated on December 11, 2009, and commenced operations on June 25, 2010. It is registered with the National Housing Bank to carry out the business of a housing finance institution without accepting public deposits. The company is entirely retail-focused, serving low and middle-income self-employed customers in the rural and semi-urban markets of India, with particular concentration in Tamil Nadu (52.27% of AUM as of March 31, 2021) and Andhra Pradesh (27.33% of AUM as of March 31, 2021). As of March 31, 2021, 72.05% of the company's AUM (₹29,308.79 million) was from self-employed customers. The company offers home loans for purchase and self-construction of residential property, home improvement and extension loans, loans against property, and business loans where residential real estate is the primary collateral. Gross Loan Assets grew from ₹22,472.33 million as of March 31, 2019 to ₹40,677.62 million as of March 31, 2021, at a CAGR of 34.54%. According to the CRISIL Report, the company had the highest RoA of 5.7% among the Peer Set during financial year 2021 and is one of the largest housing finance companies in south India in terms of AUM.
Objects of the Issue
- Augmenting the tier I capital requirements of our Company up to ₹5,000.00 million p.20
- Augmenting tier I capital requirements of our Company ₹5,000.00 million (Fresh Issue); Net Proceeds after offer expenses: ₹4,828.72 million p.95
- Not specified in this document section
- General corporate purposes
Issue Structure
- Total Issue
- ₹27,800.52 million
- Fresh Issue
- ₹5,000.00 million (14,164,305 equity shares)
- Offer for Sale
- ₹22,800.52 million (64,590,695 equity shares)
- Price Band
- ₹346 to ₹353 per equity share
- Lot Size
- 42 equity shares and in multiples of 42 equity shares thereafter
- Face Value
- ₹2 per equity share
Business Model
The company primarily earns revenue through interest income from housing loans, loans against property, and business loans provided to self-employed and salaried customers in the low and middle-income segments. The company funds substantially all of the loans through borrowings from various sources including refinancing from the National Housing Bank, term loans, working capital loans, issuance of non-convertible debentures, and securitization of loans. As of March 31, 2021, the company's total income was ₹6,552.42 million, with net interest income representing a significant portion. The company also monetizes loans through securitization to banks and financial institutions, having securitized assets worth ₹912.75 million, ₹777.33 million, and ₹643.91 million during financial years 2021, 2020, and 2019, respectively.
Business Segments
SWOT Analysis
- • Highest return on assets among peer housing finance companies(p.21)
- • One of largest HFCs in south India by AUM(p.21)
- • Strong loan portfolio growth trajectory(p.21)
- • Entirely retail-focused business model(p.21)
- • Strong profitability growth(p.36)
- • Improved capital adequacy position(p.35)
- • Tax-advantaged special reserve for housing finance activities(p.44)
- • Low balance transfer rates demonstrating customer retention(p.44)
- • Stable senior management with no attrition(p.45)
- • Government incentives and priority sector status for housing loans(p.44)
- • Highest RoA among comparable HFCs in low-income housing segment(p.161)
- • Lowest cost-to-income ratio among peer HFCs(p.163)
- • Strong asset quality with low GNPA ratio(p.163)
- • Highest capital adequacy ratio among peer group(p.163)
- • Strong disbursement growth trajectory(p.161)
- • Significant AUM growth in FY21(p.161)
- • Dominant market position in South India(p.162)
- • High market share in core operating states(p.162)
- • Highest RoA among peer set (5.7%)(p.166)
- • Lowest cost-to-income ratio among peers(p.166)
- • Exceptional asset quality with no restructured or written-off loans(p.166)
- • Rapid AUM growth at 34.54% CAGR(p.166)
- • In-house operations reducing fraud risk and turnaround times(p.166)
- • Specialized credit assessment models for 60+ customer profiles(p.166)
- • Strong capital adequacy ratio of 73.63%(p.167)
- • Steady AUM growth and expanding customer base(p.218)
- • Strong capital adequacy ratio(p.221)
- • Improving operational efficiency with declining cost ratios(p.218)
- • Consistent profitability with increasing PAT(p.217)
- • Geographic diversification across southern India(p.225)
- • Healthy net interest margin(p.219)
- • Strong collection efficiency across products(p.224)
- • Strong profitability and return on assets among peers(p.309)
- • Lowest cost-to-income ratio in the peer group(p.309)
- • Largest branch network in south India among peers(p.310)
- • Strong loan portfolio quality with no historical write-offs(p.309)
- • Rapid AUM growth driven by strategy and market position(p.309)
- • In-house control of entire lending lifecycle and risk management(p.309)
- • Customized credit assessment models developed over years(p.309)
- • High dependence on two states for operations(p.35)
- • High exposure to self-employed customers with lower credit history(p.34)
- • Significant portion of portfolio is first-time borrowers(p.33)
- • High leverage with total borrowings significantly exceeding net worth(p.31)
- • Rapid recent growth may not be sustainable(p.36)
- • NPA levels have increased post-March 31, 2021(p.30)
- • Material litigation involving directors(p.39)
- • Dependence on key managerial personnel(p.44)
- • High attrition rates among total employees(p.45)
- • Promoter liquidity lock-in and pledge arrangements affecting control(p.45)
- • Unregistered intellectual property with inadequate legal protection(p.48)
- • Subsidiary previously categorized as high-risk financial institution(p.45)
- • No formal dividend policy creating uncertainty on shareholder returns(p.49)
- • Negative operating cash flows requiring external financing(p.63)
- • Lease premises not owned with renewal risk and registration issues(p.47)
- • High proportion of self-employed customers increasing credit risk(p.164)
- • Substantial non-housing loans in portfolio(p.164)
- • Significant individual promoter shareholding concentration risk(p.165)
- • Lower average ticket size relative to some peers(p.164)
- • Highly concentrated geographic footprint(p.161)
- • Exposure to COVID-19 related asset quality deterioration(p.168)
- • High dependence on self-employed customers (72% of AUM)(p.166)
- • Significant borrowings (₹25,150.66 million as of March 31, 2021)(p.171)
- • High concentration in four southern states (52.27% in Tamil Nadu alone)(p.168)
- • Elevated 30-day past due at 9.68% as of July 2021(p.168)
- • High leverage relative to equity(p.221)
- • Growing gross NPA levels(p.218)
- • Concentrated lending in home loans(p.222)
- • Limited scale relative to mature NBFC competitors(p.235)
- • Dependence on bank and NHB funding(p.222)
- • No dividend history(p.216)
- • Dependence on morphed customer base with limited credit history(p.309)
- • High concentration in south India geography(p.310)
- • Significant portion of loan portfolio in early tenure stages with emerging delinquency risk(p.313)
- • Dependence on complex debt structures and refinancing needs(p.310)
- • Impairment on financial instruments increased significantly in 2021(p.327)
- • Negative Tier II capital component in capital adequacy(p.332)
- • Director involved in multiple investigations and litigation(p.336)
- • Expansion into new geographic markets(p.38)
- • Growing housing finance market in rural and semi-urban areas(p.21)
- • Potential to leverage strong brand and digital infrastructure(p.37)
- • Ability to grow loan portfolio through new branches(p.36)
- • Refinancing opportunities from NHB and other sources(p.30)
- • Government low-cost housing credit schemes and PMAY incentives(p.44)
- • Growing housing finance market with supportive government policies(p.52)
- • RBI-defined affordable housing loans up to ₹2.50 million with reduced risk weights(p.44)
- • Massive housing shortage creates market expansion opportunity(p.126)
- • Government push for affordable housing and PMAY scheme support(p.123)
- • Expected long-term market growth in low-income housing segment(p.141)
- • Rapid growth of mini and small HFCs in low-income segment(p.152)
- • Structural tailwinds from urbanization and rising per capita income(p.128)
- • Favorable regulatory environment and shift to standardized processes(p.145)
- • Massive housing shortage in low-income segment (95% of 100 million unit shortage)(p.172)
- • Expansion into Maharashtra, Odisha and Chhattisgarh(p.172)
- • Growth in low and middle-income self-employed customer segment(p.172)
- • Deeper penetration in existing high-penetration states (Tamil Nadu 86.8%, AP 100%)(p.172)
- • Government-backed affordable housing schemes (Pradhan Mantri Awas Yojana)(p.172)
- • Co-lending opportunities with banks under RBI framework(p.182)
- • Expansion into untapped geographies beyond southern states(p.225)
- • Growth in low and middle income housing segment(p.225)
- • Expansion of Loan Against Property product(p.222)
- • Growing proportion of self-employed borrowers(p.225)
- • Securitisation as a funding alternative(p.218)
- • Expansion into adjacent geographies within retail housing finance(p.310)
- • Growth in affordable housing segment through government incentives(p.313)
- • Monetization of loans through securitization to optimize capital(p.310)
- • Increased demand driven by economic growth and housing policy support(p.313)
- • Digital transformation across lending lifecycle(p.309)
- • Significant growth in loan portfolio and AUM(p.326)
- • Strong profitability growth trajectory(p.327)
- • Expansion of branch network and employee base(p.327)
- • Access to diverse funding sources(p.330)
- • Severe ongoing impact of COVID-19 pandemic on business(p.29)
- • Increased customer defaults and NPA spike post-moratorium(p.30)
- • Restrictive regulatory borrowing limits constraining growth(p.31)
- • Highly competitive housing finance industry(p.37)
- • Interest rate volatility and net interest margin compression risk(p.34)
- • Increasing regulatory complexity and compliance burden(p.40)
- • Risk of liquidity constraints in debt capital markets(p.31)
- • Cyber security and data breach risks(p.37)
- • Policy uncertainty on continued government incentives for housing finance(p.44)
- • Tax law changes affecting housing finance profitability(p.44)
- • Balance transfer risk from variable rate loans affecting loan turnover(p.44)
- • Prohibition on pre-payment penalties increasing loan portfolio turnover(p.44)
- • Insolvency and Bankruptcy Code limiting recovery rights(p.47)
- • Macroeconomic risks from slowdown and inflation(p.51)
- • Inflation-driven cost increases difficult to pass to customers(p.52)
- • Regulatory uncertainty from NHB to RBI regulatory transition(p.52)
- • Contagious disease outbreaks impacting economic activity(p.51)
- • Self-employed borrower segment vulnerability to economic shocks(p.138)
- • Rising delinquency in low-income housing segment from COVID-19 impact(p.138)
- • Heightened credit assessment challenges in low-income segment(p.153)
- • Geographic concentration risk in Southern India(p.161)
- • Rising cost of funding pressures margins(p.139)
- • Increased competition from larger HFCs and banks in market(p.134)
- • Highly competitive housing finance industry(p.178)
- • Interest rate risk from RBI monetary policy(p.176)
- • Regulatory changes in HFC definition and compliance timeline pressure(p.181)
- • Macroeconomic disruptions impacting borrower repayment capacity(p.166)
- • Dependence on capital market access and refinancing sources(p.171)
- • Borrowing limit restrictions by RBI (13x net owned funds from March 31, 2021)(p.181)
- • COVID-19 pandemic impact on asset quality and operations(p.232)
- • Rising gross NPA ratio over time(p.218)
- • Dependence on macroeconomic conditions for housing demand(p.216)
- • Regulatory changes in housing finance and NHB rules(p.216)
- • Interest rate and cost of borrowing volatility(p.219)
- • Competition from larger NBFC and banking peers(p.216)
- • COVID-19 pandemic impact on customer repayment capacity and operations(p.311)
- • Exposure to real estate sector volatility affecting collateral values(p.313)
- • Intense competition from multiple HFCs and NBFCs(p.313)
- • Regulatory tightening and reduced borrowing capacity limits(p.313)
- • Economic slowdown risk affecting customer default rates(p.313)
- • Regulatory changes and compliance obligations on HFCs(p.313)
- • COVID-19 pandemic impact on credit quality(p.327)
- • Interest rate volatility and sensitivity(p.332)
- • Competitive industry environment(p.334)
- • Credit risk from borrower defaults(p.332)
- • Liquidity and asset-liability management challenges(p.333)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| M Anandan | Founder/Promoter | 19.98% | 19.40% |
| Padma Anandan | Founder/Promoter | 5.19% | 4.54% |
| WestBridge Crossover Fund, LLC | Investor/Promoter | 35.67% | 34.65% |
| M Anandan | Promoter/Founder | 19.98% | 19.40% |
| Padma Anandan | Promoter/Founder | 5.19% | 4.54% |
| WestBridge Crossover Fund, LLC | Promoter Group/Investor | 35.67% | 34.65% |
| — | Not provided in this document section | — | — |
| M Anandan | Promoter | 19.98% | — |
| Padma Anandan | Promoter | — | — |
| WestBridge Crossover Fund, LLC | Promoter | — | — |
| M Anandan | Promoter | — | — |
| Padma Anandan | Promoter | — | — |
| WestBridge Crossover Fund, LLC | Promoter | — | — |
| M Anandan | Promoter | 19.98% | — |
| Padma Anandan | Promoter Group | 5.19% | — |
| Westbridge Cross Over Fund LLC | Investor with Significant Influence | 35.67% | — |
| Aravali Investment Holdings | Investor | 8.69% | — |
| Padma Anandan | Promoter/Selling Shareholder | — | — |
| M Anandan | Promoter/Selling Shareholder (Joint holder with Padma Anandan) | — | — |
| Aravali Investment Holdings | Investor Selling Shareholder | — | — |
| JIH II, LLC | Investor Selling Shareholder | — | — |
| GHIOF Mauritius | Investor Selling Shareholder | — | — |
| Madison India Opportunities IV | Investor Selling Shareholder | — | — |
| M Anandan | Promoter | — | — |
| Padma Anandan | Promoter | — | — |
Leadership
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.