Aadhar Housing Finance IPO Subscribed 25.49 Times On Final Day

Aadhar Housing Finance Ltd.'s initial public offering was subscribed 25.49 times on the third and final day on Friday. It was subscribed 1.48 times on its second day and 43% on the first day.

The three-day issue by the housing finance company comprised a fresh issue of shares worth Rs 1,000 crore and an offer for sale of Rs 2,000 crore by promoters and shareholders, according to the red herring prospectus.

Of the total fundraise of Rs 3,000 crore, Aadhar Housing Finance intends to use Rs 750 crore to meet future requirements towards lending and other corporate purposes.

The minimum investment threshold mandated for retail investors was Rs 14,805. The company offered a discount of Rs 23 per share to its employees. It has raised Rs 898 crore from anchor investors ahead of its IPO.

• Issue opens: May 8.

• Issue closes: May 10.

• Issue price: Rs 300–315 per share.

• Fresh issue: Rs 1,000 crore.

• Offer for sale: Rs 2,000 crore.

• Total issue size: Rs 3,000 crore.

• Listing: BSE and NSE.

• Lot size: 47 shares.

Aadhar Housing Finance IPO allotment is likely to be finalised on Monday, May 13.

The company, which commenced its operations in February 2011, had a capital adequacy ratio of 39.7% as on Dec. 31, 2023. This is well above the RBI's minimum capital requirement for housing finance companies of 15%. The company's tier-1 capital stood at 38.9%.

Net worth of the company was Rs 4,249 crore at the end of December quarter. Aadhar Housing Finance focusses on low-income housing segment, where the ticket size is less than Rs 15 lakh and offers mortgage-related loan products in tier-4 and tier-5 towns across the country.

The IPO has been subscribed 25.49 times as of 7 p.m. on Friday.

• Institutional investors: 72.78 times.

• Non-institutional investors: 16.50 times.

• Retail investors: 2.46 times.

• Employee reserved: 6.52 times.