Aptus Value Housing Finance has received the capital market regulator’s go-ahead to float its initial public offering. The Chennai-based financial services provider had filed preliminary papers with SEBI in May to raise funds via public issue. As per its DRHP, the company’s IPO will comprise a fresh issue worth Rs. 500 crores and an offer for sale (OFS) of 64,590,695 shares by the company’s existing shareholders and promoters.
With the IPO set to launch soon, it’s imperative for investors to know the crucial details regarding Aptus Value. But before we delve into them, let’s get to know more about this company.
Aptus Value Housing Finance in Brief
This is a financial services company that primarily caters to the requirements of self-employed retail customers belonging to the low and middle-income segment. The company’s area of focus includes rural and semi-urban markets in India. Its offerings do not include products for commercial real estate.
Furthermore, Aptus Value does not offer credit to builders.
Aptus Value IPO – Crucial Details
Here are some essential details that individuals need to keep in mind regarding Aptus Value’s initial share sale:
- Type of Issue: Book built issue
- Listing on: NSE and BSE
- Face Value: 2 per equity share
- Market Lot: Yet to be announced
- Minimum Order Quantity: Yet to be announced
- IPO Opening Date: Yet to be announced
- IPO Closing Date: Yet to be announced
The table below represents the share allotment across different investor segments:
|Investor Segment||Reserved Portion|
|Qualified Institutional Buyers (QIBs)||50%|
|Non Institutional Investors||15%|
|Retail Individual Investors||35%|
Aptus Value has also reserved a portion of its public issue for eligible employees.
The company is looking to fulfil the following objectives by raising funds via its initial public offering:
- Covering all expenses in relation to the issue
- Augmenting the capital base that will enable it to fund future capital requirements
- Fulfilment of general corporate purposes
In case one is looking to subscribe to the initial public offering of Aptus Value, he/she must consider the strengths, financials, etc., of the issuer. In the following section, we’ll be looking at these aspects.
Competitive Strengths of Aptus Value
The following are the strengths of Aptus Value Housing Finance:
- This company has been efficient in expanding its scale of operations since its inception. Between 31 March 2018 and 31 December 2020, Aptus Value’s assets under management increased from Rs.14,167 million to approximately Rs.37,909 million, thus representing a CAGR of close to 39%.
- Aptus Value has managed to improve its geographical concentration.
- Profitability indicators of this company are quite favourable.
Besides these, it’s vital to look at the company’s financial position.
Here are some key highlights of the company’s financials:
- For the year ended March 2020, Aptus Value’s revenue stood at Rs. 5,003.26 crores. In the same financial year, it incurred total expenses of Rs. 2764.30 crores.
- The company reported total revenue of Rs. 3,371.15 crores for the year ended March 2020, whereas its overall expenses stood at Rs. 1843.10.
- For the year ended March 2020, Aptus Value recorded a profit (after tax) of Rs. 2110.12 crores, representing an increase of Rs. 994.55 crores in comparison to the previous financial year.
Aptus Value has been consistent in improving its scale of operations and geographical concentration. Furthermore, the company is financially well placed with favourable profitability indicators. Accordingly, investors might want to subscribe to the company’s initial share sale. Nevertheless, they must consider more aspects like weaknesses, threats, opportunities concerning Aptus Value before subscribing to the IPO.