Aadhar Housing Finance shares end over 5% higher after flat debut in early trade

Shares of Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, ended over 5 per cent higher after making a flat market debut in early trade on Wednesday against the issue price of Rs 315.

The stock listed at par with the issue price at Rs 315 on the NSE. During the day, it hit a high of Rs 343.70 and a low of Rs 292. Shares of the company ended at Rs 332.20 apiece, up 5.46 per cent.

On the BSE, the stock made its debut at Rs 314.30, a dip of 0.22 per cent from the issue price. In intra-day, it climbed 8.95 per cent to Rs 343.20. Later, it ended at Rs 329.55 each share, up 4.61 per cent.

The company's market valuation stood at Rs 14,055.92 crore.

In volume terms, 32.97 lakh shares of the firm were traded on the BSE and 713.98 lakh shares on the NSE during the day.

The initial public offer of Aadhar Housing Finance received 25.49 times subscription on the closing day of the share sale on Friday.

The Rs 3,000 crore initial share sale was a combination of 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.

The three-day IPO had a price range of Rs 300-315 a share.

The company plans to utilise Rs 750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending, while a portion will be used for general corporate purposes.

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The housing finance company is focused on the low-income housing segment, serving economically weaker and low-to-middle-income customers, who require small-ticket 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.