Aadhar Housing Finance IPO: What does GMP indicate before subscription?

Housing finance company Aadhar Housing Finance initial public offerings (IPO) will open for subscription on May 8 and will close on May 10. The mainboard segment IPO has set at 300 to 315 per share.

Ahead of the issue, Aadhar Housing Finance IPO is commanding a premium of 51 per share in the grey market on May 5, against 55 per share on May 4, according to market observers. 

Also read: Aadhar Housing Finance IPO price band set at 300-315 per share; issue to open on May 8

This means that the estimated listing price of Aadhar Housing Finance IPO could be 366, which is 16.19% more than the IPO price of 315.

As per investorgain.com, the lowest GMP  of Aadhar Housing Finance is 0, while the highest GMP is 130.

Aadhar Housing Finance IPO details

The company intends to raise 3,000 crore from the issue at the higher end of the price band. The Aadhar Housing Finance IPO includes a fresh issue of 3.17 crore equity shares, totaling 1,000 crore, and an offer for sale (OFS) component of 6.35 crore shares, totaling 2,000 crore.

The lot size for the IPO comprises 47 shares, with a minimum investment threshold of 14,805 mandated for retail investors. Additionally, the company extends a discount of 23 per share to its employees. The allocation of Aadhar Housing Finance IPO shares is anticipated to be concluded by May 13, followed by their listing on May 15 at both the BSE and NSE.

The company plans to utilize the net proceeds from the issue to fulfill future capital needs for onward lending and general corporate purposes.

For the Aadhar Housing Finance IPO, ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, Nomura Financial Advisory And Securities (India), and SBI Capital Markets are serving as the book running lead managers, with Kfin Technologies Limited appointed as the IPO registrar.

Also read: Upcoming IPOs: 9 new public issues and 4 new listings scheduled for this week; check full list here

Aadhar Housing Finance provides housing finance solutions to the lower income demographic. Its customer base primarily resides in tier 4 and tier 5 towns across India. By September 30, 2023, the company boasted a network of 471 branches, alongside 91 sales offices, spanning across 20 states and union territories. 

During the financial year 2022-2023, Aadhar Housing Finance achieved a net profit of 545.34 crore, generated from a revenue of 2,043.52 crore.

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Published: 05 May 2024, 02:11 PM IST

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