Aptus Value Housing Finance IPO: Should you subscribe? Anil Singhvi DECODES positives, negatives of this offer; tells you what to do

As the initial public offer (IPO) of Aptus Value Housing Finance opened today (August 10), Zee Business Managing Editor Anil Singhvi recommended the investors to apply for this offer only with a long-term view. The three-day IPO, which began today, will remain open till August 12, 2021. 

Singhvi said investors with a view of three-five years should certainly invest. He mentions, there are already 10-12 housing finance companies listed on the exchanges. 

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Positives 

Aptus Value Housing Finance promoters are really good and the management is experienced, the managing editor said, adding that the asset quality and a loan book of the company is strong since inception in 2009, as they have never done any loan restructuring so far. 

The market guru further states, Aptus Value HFC has at least 75 per cent of individual loans and due to which their NPAs (non-performing assets) are quite manageable. Moreover, the housing finance company has had an impressive growth track record in the last three years. 

Summing up the positives of the company, Singhvi says, experienced promoters, a good loan book, and impressive growth make the company lucrative. 

Negatives 

The managing editor pointing out negative said the housing finance company has operations only in the southern part of India, of which their larger prominence is Tamil Nadu, then Andhra Pradesh and Telangana, and some parts of Karnataka too. 

Singhvi expected the valuations of the company could have been 10 per cent cheaper, however, he terms the current valuations are okay, neither cheap nor attractive. He cites an example that even Home First Finance company also did the same thing, and it didn’t get quite a good response. 

The market guru mentions, we already have at least dozens of housing finance companies listed on the bourses, cheap valuations would have made them more attractive.  

Before concluding the Aptus Value IPO preview, Singhvi said investors and fund managers already have lot of other IPO options as being a housing finance company, Aptus Value should have kept the valuations little cheaper. However, it’s good if the investors get bumper returns on listing.