Blackstone-backed Aadhar Housing Finance refiles papers for ₹5,000 crore IPO

Mumbai: Blackstone-backed Aadhar Housing Finance Ltd has refiled draft papers with the Securities and Exchange Board of India (Sebi) to raise up to ₹5,000 crore through an initial public offering (IPO). This comes after the company’s initial filing in 2021 lapsed due to regulatory timelines.

The IPO comprises fresh issuance of shares worth ₹1,000 crore and an offer for sale (OFS) by Blackstone Group company BCP Topco VII Pte that will sell shares worth ₹4,000 crore.

This is a refiling of the IPO papers submitted in January 2021, which received Sebi approval in May 2022. Due to the lapse of validity after a year, Aadhar Housing had to refile for a fresh attempt.

The net proceeds from the IPO will be used to meet future capital requirements for onward lending and general corporate purposes.

Currently, Blackstone owns a 98.72% stake (389.68 million shares) in Aadhar Housing, while ICICI Bank holds the remaining 1.18%. In June 2019, the original promoters of Dewan Housing Finance Corporation (DHFL) transferred their entire shareholding to BCP Topco.

ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital, Nomura Financial Advisory and Securities , SBI Capital are the book-running lead managers to the issue.

Aadhar Housing is focused on the low-income housing segment (loans under ₹1.5 million) in India. As of September 30, 2023, it had the highest assets under management (AUM) and net worth among its peers, according to CRISIL.

The company offers mortgage-related loans for residential property purchase, construction, home improvement, and commercial property with a network of 471 branches.

Indian markets are witnessing a surge in IPO filings. The outcome of an initial offering largely hinges on the prevailing mood in the broader financial market. When market sentiment is buoyant and investor confidence is high, newly launched IPOs generally fare better.