Aadhar Housing Finance IPO: Issue subscribed 0.32 times on day 1, check details

Housing finance company Aadhar Housing Finance initial public offerings (IPO) opened for subscription on May 8 and will close on May 10. The Blackstone-backed company’s IPO was subscribed 0.32 times.

Approximately 50 percent of the shares have been set aside for Qualified Institutional Buyers (QIB), while 35 percent is designated for retail investors, with no less than 15 percent earmarked for Non-Institutional Investors (NII).

Also read: Aadhar Housing Finance IPO to open today; Here are 10 things to know before you subscribe to the issue

Aadhar Housing Finance specializes in providing housing finance solutions to the lower-income segment. Its customer base predominantly resides in tier 4 and tier 5 cities across India. As of September 30, 2023, the company operated a network of 471 branches and 91 sales offices, covering 20 states and union territories.

Aadhar Housing Finance IPO subscription status

The Aadhar Housing Finance IPO received 2,22,06,795 shares against offered 7,00,89,373 shares on the first day of bidding. The issue was subscribed over 0.32 times on May 8, as per BSE data.

The retail portion was subscription 0.28 times, meanwhile, NII and QIB was subscribed over 0.37 and 0.33 times on the first day.

Aadhar Housing Finance IPO details

The company aims to raise 3,000 crore from the issuance at the upper end of the price range. Blackstone-backed company’s issue has set the price range for its forthcoming IPO at 300 to 315 per share.

The Aadhar Housing Finance IPO involves a fresh issue of 3.17 crore equity shares, amounting to 1,000 crore, along with an offer for sale (OFS) component of 6.35 crore shares, totaling 2,000 crore.

Also read: Aadhar Housing Finance IPO to open on May 8; what does GMP indicate before subscription?

The IPO’s lot size consists of 47 shares, with a minimum investment requirement of 14,805 for retail investors. Additionally, the company offers a discount of 23 per share to its employees. Allocation of Aadhar Housing Finance IPO shares is expected to be completed by May 13, with listing scheduled for May 15 on both the BSE and NSE.

Proceeds from the issue are intended to be utilized by the company to address future capital requirements for lending activities and general corporate purposes.

Aadhar Housing Finance GMP today

According to market observers, the Aadhar Housing Finance IPO is trading at a premium of 71 per share in the grey market on May 8, compared to 70 per share on May 8. 

This suggests that the anticipated listing price of the Aadhar Housing Finance IPO could be 386, marking a 22.54% increase from the IPO price of 315.

As indicated by investorgain.com, the grey market premium (GMP) for Aadhar Housing Finance ranges from a low of 0 to a high of 130.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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Published: 08 May 2024, 08:30 PM IST

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