Mortgage lender Aadhar Housing Finance has filed draft papers for an initial public offer with a size of ₹5,000 crore, of which ₹4,000 crore is an offer for sale by promoter Blackstone, which holds 98.7 per cent stake now.
The housing finance company will be raising ₹1,000 crore through a fresh issue of shares, the major portion of which will be used to meet future capital requirements for onward lending. There may also be a pre-IPO placement worth ₹200 crore.
Aadhar Housing lends to the affordable and low-income housing segment with a ticket size less than ₹15 lakh. It 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.
Blackstone gained control of the lender in 2019, when it acquired nearly 81 per cent stake in it from the former promoters of Dewan Housing Finance Corporation, who are being investigated by various regulatory agencies, allegedly defrauding banks.
For the six months ending September 30, 2023 the HFC reported a net profit of ₹343.6 crore on revenue of ₹1,222 crore and its gross assets under management were at ₹18,885 crore.
The average ticket size of the company’s loans was ₹9 lakh with an average loan-to-value of 57.6 per cent and 58.1 per cent, as of September 30, 2022 and September 30, 2023, respectively.