Sebi approves Aadhar Housing Finance’s Rs 5,000 crore initial public offering.

NEW DELHI: According to an update filed with the markets regulator on Monday, Aadhar Housing Finance Ltd., supported by prominent private equity firm Blackstone, has been given the go-ahead by Sebi to raise Rs 5,000 crore through an initial public offering (IPO).

According to the Draft Red Herring Prospectus (DRHP), the proposed IPO consists of an offer for sale (OFS) of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc., and a new issue of equity shares valued at Rs 1,000 crore.

At the moment, BCP Topco owns 98.72% of Aadhar Housing Finance.

Aadhar Housing Finance received its observation on April 5th, according to an update from the Securities and Exchange Board of India (Sebi), after submitting preliminary IPO papers to the markets regulator in February.
According to Sebi’s observation, the IPO can now be floated.

According to the draft papers, the business plans to use the Rs 750 crore in proceeds from the new issuance to cover future capital needs for further lending. Some of the funds would also be used for general corporate reasons.

Aadhar Housing Finance provides a variety of mortgage-related loan products, such as loans for the acquisition and construction of commercial real estate, home improvement and extension loans, and loans for the purchase and construction of residential real estate.

The company is a retail-focused HFC that specializes in low-income housing, catering to consumers who are low-to-middle-income and economically disadvantaged and who need small-ticket mortgage loans.

As of September 30, 2023, it has a network of 471 branches, including 91 sales offices.

The business gains from Blackstone’s assets, connections, and knowledge as one of the top investment firms globally.
In January 2021, Aadhar Housing submitted draft documents to Sebi to raise Rs 7,300 crore through the sale of initial shares.

Although it secured the regulator’s approval to go public with the issue in May 2022, it chose not to proceed with the launch.

The book-running lead managers for the issue are 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.