Aadhar Housing Finance IPO listing: Shares make weak debut; stock lists at Rs 314.3 apiece on BSE

Amid muted market momentum on May 15, 2024, IPO of Aadhar Housing Finance, backed by private equity major Blackstone, saw a subdued D-Street debut. On the BSE, the stock listed at Rs 314.3, a discount of 0.22 per cent over the IPO issue price of Rs 315, while on the NSE the stock's listing price has been at par at Rs 315 apiece.

The Rs 3,000 crore initial share sale received 25.49 times subscription on the final day of bidding, with qualified institutional buyers (QIBs) quota booked 72.8x, HNI portion subscribed 16.5x and retail book subscribed as much as 2.5x.

The public issue of Aadhar Housing Finance comprised a fresh issue of equity shares worth Rs 1,000 crore and an OFS (Offer for Sale) of Rs 2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc. BCP Topco held  a 98.72 per cent stake in Aadhar Housing Finance.

The company said it mopped up Rs 898 crore from anchor investors.

Aadhar Housing Finance plans to deploy Rs 750 crore of the fresh issue proceeds towards financing future capital requirements and a portion for general corporate tasks.

Earlier Anil Singhvi- Zee Business Managing Editor expected  Aadhar Housing Finance IPO to have a better-than-reasonable listing. Singhvi also said that the company has strong promoters and investors should subscribe with a long-term view.

Incorporated in 1990, Aadhar Housing Finance is a retail-focused housing finance company (HFC) that specializes in the low-income housing segment, primarily serving economically weaker and low-to-middle income customers who require small ticket mortgage loans. The average loan ticket size is Rs 9 lakh. The company is into offering a variety of mortgage-related loan products, including loans for the purchase and construction of residential properties, home improvement and extension loans, as well as loans for the construction and acquisition of commercial properties.