Aadhar Housing Finance's Initial Public Offering (IPO) sees a modest start, with shares listing below issue price. Aadhar Housing Finance, a key player in the housing finance sector, made its debut on Dalal Street on Wednesday (May 15), with its shares opening at Rs 314 per share. However, this marked a slight dip of 0.3 percent from its issue price of Rs 315 per share.
The IPO, which aimed to raise Rs 3,000 crore, saw robust subscription rates, being oversubscribed by 26.76 times. Notably, institutional investors showed substantial interest, with the Qualified Institutional Buyers (QIBs) category oversubscribed by 76.4 times, followed by non-institutional investors (NIIs) at 17.3 times, and retail investors at 2.5 times.
Conducted between May 7 and May 10, the IPO was priced in the range of Rs 300-315 per share. The net proceeds from the IPO are earmarked to meet the company's future capital requirements for lending activities and general corporate purposes.
Aadhar Housing Finance's IPO comprised an offer-for-sale (OFS) by promoter BCP Topco VII Pte, a Blackstone Group affiliate, amounting to Rs 2,000 crore, along with a fresh issue of equity shares worth Rs 1,000 crore.
Prior to the IPO launch, the company conducted an anchor book on May 7, which attracted 61 funds, resulting in a collection of Rs 898 crore.
Established in 2010, Aadhar Housing Finance specializes in providing housing finance solutions to the lower-income segments. Its offerings include a diverse range of mortgage financing options for residential and commercial property purchases, development, as well as home remodelling and expansion projects.
The IPO was managed by leading book-running managers, including SBI Capital Markets, ICICI Securities, Kotak Mahindra Capital, Nomura Financial Advisory, and Citigroup Global Markets India.
Meanwhile, Hindalco Industries has said its arm Novelis Inc has filed papers with the US securities regulator, the Securities and Exchange Commission, for its proposed Initial Public Offering (IPO).
Novelis will be listing its common shares on the New York Stock Exchange.
Hindalco, the flagship company of Aditya Birla Group, did not disclose the size of the IPO of its wholly-owned subsidiary Novelis Inc. It also did not give any timeline to hit the market with its public issue.
The common shares are expected to be offered by Novelis' sole shareholder, A V Minerals (Netherlands) NV, also, a fully-owned subsidiary of Hindalco Industries Limited.