08 March 2024 – Aadhar Housing Finance, backed by Blackstone, has obtained approval from the Securities and Exchange Board of India (Sebi) to raise Rs 5,000 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.
Utilization of Funds:
Proceeds from the fresh issue, amounting to Rs 750 crore, will be allocated towards meeting future capital requirements for lending activities. Additionally, a portion of the funds will be utilized for general corporate purposes.
Aadhar Housing Finance specializes in offering mortgage-related loan products catering to residential and commercial property segments. The company’s focus is on the low-income housing sector, serving economically weaker and low-to-middle income customers with small-ticket mortgage loans.
With a strong network comprising 471 branches, including 91 sales offices, as of September 30, 2023, Aadhar Housing Finance leverages Blackstone’s resources, relationships, and expertise as a leading investment firm.
Aadhar Housing Finance had earlier filed draft papers with Sebi in January 2021 for an IPO to raise Rs 7,300 crore. While receiving Sebi’s approval in May 2022, the IPO launch was delayed. Now, with the recent Sebi nod, the company is poised to move forward with its IPO plans.
Conclusion:
The book running lead managers for the IPO include ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and SBI Capital Markets.
