Aadhar Housing Finance, Backed by Blackstone, Receives SEBI Nod For Rs 5,000-Cr IPO Launch

Aadhar Housing Finance IPO: The firm plans to utilise the proceeds from the fresh issue, totaling Rs 750 crore, primarily for future capital requirements towards lending and for corporate purposes

Aadhar Housing Finance IPO: The IPO comprises a fresh issue of equity shares worth Rs 1,000 crore and an OFS of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc, according to the DRHP.

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Aadhar Housing Finance IPO: Aadhar Housing Finance Ltd, backed by private equity major Blackstone, has been granted approval by the Securities and Exchange Board of India (SEBI) to raise Rs 5,000 crore through an initial public offering (IPO), as revealed in an update with the markets regulator on Monday.

According to a report by PTI, the proposed 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, according to the Draft Red Herring Prospectus (DRHP). As of now, BCP Topco holds a significant 98.72 per cent stake in Aadhar Housing Finance.

Aadhar Housing Finance, which submitted preliminary IPO papers with the markets regulator in February, received SEBI's observation on April 5, indicating approval to proceed with the IPO.

The company plans to utilise the proceeds from the fresh issue, totaling Rs 750 crore, primarily for future capital requirements towards lending and also for general corporate purposes.

Aadhar Housing Finance specialises in offering a variety of mortgage-related loan products, catering especially to the low-income housing segment. Its services include loans for residential property purchase, construction, home improvement, extension loans, and loans for commercial property construction and acquisition.

With a network of 471 branches, including 91 sales offices, as of September 30, 2023, the company focuses on economically weaker and low-to-middle-income customers requiring small ticket mortgage loans.

Benefiting from the resources, relationships, and expertise of Blackstone, one of the world's leading investment firms, Aadhar Housing Finance aims to further expand its operations through the IPO.

Previously, Aadhar Housing had filed draft papers with SEBI in January 2021 to raise Rs 7,300 crore through an initial share sale. Although it had received approval from the regulator in May 2022, the company did not proceed with the launch at that time.

The book running lead managers for the IPO include ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, and SBI Capital Markets Ltd.