Representative image Aadhar Housing Finance Ltd, which is backed by private equity giant Blackstone, on Thursday said it has set a price band of Rs 300 to Rs 315 per share for its initial public offering worth Rs 3,000 crore. The initial share sale will be open for public subscription from May 8 to 10 and bidding for anchor investors will be open for one day on May 7, the company said in a statement.
This will be the third first public release to open next week, after TBO Tek and Indegene.
The initial public offering (IPO) of Aadhar Housing Finance is a combination of a fresh issue of shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 2,000 crore by promoter BCP Topco VII Pte Ltd, a subsidiary of Blackstone Group Inc.
Currently, BCP Topco holds 98.72 percent stake in Aadhar Housing Finance and ICICI Bank holds 1.18 percent stake.
The company plans to use Rs 750 crore of the proceeds from the fresh issue to meet future capital requirements for on-lending and a portion will also be used for general corporate purposes.
“The listing is a significant milestone for Aadhar Housing Finance and its transformation is a great example of what we do best: building companies that build India. We have leveraged our scale, network and best global practices to make the company grow and empower the company as it digitizes its processes from start to finish, from creation to collection,” said Amit Dixit, Head of Private Equity Asia at Blackstone.
Half of the issue size is reserved for qualified institutional buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Earlier this month, Aadhar Housing Finance received the green light from Sebi to facilitate its IPO.
Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for the purchase and construction of homes; home improvement and expansion loans; and loans for the construction and purchase of commercial real estate.
The company is an HFC that focuses on the low-income housing segment and serves economically weaker and low-to-middle-income customers who require small-dollar mortgage loans. It has a network of 471 branches, including 91 sales offices, as of September 30, 2023.
The company benefits from the resources, relationships and expertise of Blackstone, one of the world’s leading investment firms.
ICICI Securities, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd and SBI Capital Markets are the lead managers of the issue.
