Aadhar Housing Finance Limited, a notable name in the housing finance sector, is laying the groundwork for a significant market move. Scheduled for May 8, 2024, Aadhar Housing Finance will be opening its initial public offering (IPO) to public investors. This market debut is expected to garner significant attention, as the company plans to issue fresh equity shares that will aggregate to a value of Rs 10,000 million. Additionally, there will be an offer for sale of equity shares from BCP Topco VII Pte. Ltd. totaling up to Rs 20,000 million.
As the financial sector observes with interest, potential investors are informed of the key details surrounding this IPO. The price band is set strategically between Rs 300 and Rs 315 per equity share, with a face value of Rs 10 each. The bidding process is scheduled to open on May 8, 2024, Wednesday, and will continue till May 10, 2024, Friday.
A day prior to the official opening, on May 7, 2024, anchor investors will have their exclusive opportunity to place their bids. The bidding structure is such that interested parties can bid for a minimum of 47 Equity Shares and subsequently in multiples of 47 Equity Shares.
The esteemed group of Book Running Lead Managers for Aadhar Housing Finance IPO includes ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory and Securities (India) Private Limited, and SBI Capital Markets Limited. Together, they are poised to steer this financial event to success.
The funds raised from the fresh issue are earmarked for specific purposes. Aadhar Housing Finance intends to utilize this capital infusion primarily to bolster future capital requirements for onward lending and for diverse general corporate objectives.
In adhering to the regulatory framework, the company has outlined the allocation of the Net Offer. A maximum of 50% is available to Qualified Institutional Buyers (QIBs). A potential allotment of up to 60% of the QIB portion could be directed to Anchor Investors, based on discretionary decisions made in consultation with the lead managers. It has been decided that at least one-third of this segment be potentially earmarked for domestic Mutual Funds, contingent on receiving valid bids from these funds at or above the Anchor Investor Allocation Price.
Further delving into the allocation specifics, should there be under-subscription or non-allocation in the Anchor Investor portion, the unallocated Equity Shares will be shifted back to the QIB Portion. Mutual Funds have been guaranteed a slice of the pie, with 5% of the Net QIB Portion designated for Mutual Funds on a proportionate basis, leaving the remainder for all other QIB Bidders, including Mutual Funds, based on the reception of valid bids at or above the Offer Price.
Besides institutional buyers, there is also a designated portion for Non-Institutional Bidders, which will be no less than 15% of the Net Offer, broadening the potential investor base for this offering.
In a statement from the company, it has confirmed that all capitalized terms not defined within the context of the press release will carry the meanings prescribed in the Red Herring Prospectus (RHP).
As Aadhar Housing Finance embarks on this new financial chapter, market watchers are primed for what is anticipated to be a robust entry into the public markets. With a comprehensive strategy and credible management at the helm, the IPO stands poised for a potentially successful launch, offering a fresh avenue for investors seeking to diversify their portfolios within the finance sector.
