The retail-focused housing finance company Aptus Value Housing Finance has fixed their upcoming IPO’s price band at Rs. 346 to Rs. 353 per share.
The IPO is set to open for subscription on 10 August 2021 and will close on 12 August 2021. At Rs. 353 per share, the non-banking lender will raise around Rs. 2,780 crores from the issue.
If any anchor book is present, it will open for one day on 9 August 2021.
Now let’s take a detailed look at the company and its upcoming IPO.
About Aptus Value Housing Finance
Incorporated in 2009, they primarily serve the needs of low and middle-income self-employed customers in rural and semi-urban regions. The lending company offers loans for retail customers, targeting first-time homebuyers and doesn’t provide loans for builders or commercial real estate.
Per their CRISIL report, they are one of the largest housing finance companies in South India in terms of AUM (Assets under management).
Aptus Value IPO – Key Details
The Aptus IPO will consist of a mix of a fresh issue of shares worth Rs. 500 crores and an OFS (offer for sale) totalling 64,590,695 (64.59 million) shares.
The company will utilise the net proceeds from this issue to supplement the company’s Tier 1 capital requirements. Moreover, this IPO will be used to meet future capital requirements and achieve the benefits of listing these shares on the bourses.
In this IPO, the following entities will offload their stakes in Aptus Value:
- Aravali Investment Holdings (19.76 million shares)
- JIH II LLC (28.38 million shares)
- Ghiof Mauritius (10 million shares)
- Madison India Opportunities IV (3.72 million shares)
- Padma Anandan (2.5 million shares)
The book-running lead managers to the issue comprise Kotak Mahindra Capital Company, ICICI Securities, Citigroup Global Markets India, and Edelweiss Financial Services.
M Anandan, Padma Anandan, and Westbridge Crossover Fund LLC are the company’s promoters, while KFintech Private Limited is the registrar to the issue.
Aptus has reserved up to 50% of the total offer for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
The following table presents the other essential information on the IPO.
|Face Value||Rs. 2 per Equity Share|
|Price Band||Rs. 346 to Rs. 353 per share|
|Market Lot||42 Shares|
|Minimum Investment||1 lot, 42 shares, Rs. 14,826|
|Fresh Issue||Aggregating up to Rs. 500 crores|
|Offer for Sale||6,45,90,695 shares Aggregating up to Rs. 2,280.05 crores|
|Basis of Allotment Date||18 August 2021|
|Initiation of Refunds Date||20 August 2021|
|Credit to Demat Account Date||23 August 2021|
|IPO Listing Date||24 August 2021|
How Is Aptus Value Faring Financially?
The following points discuss Aptus Value’s financial status:
- Aptus Value Housing is one of the largest HFCs in India in terms of their AUM, Rs. 37.91 billion.
- They have disbursed loans totalling Rs. 12,709.8 million for FY20.
- The company’s gross loan assets stood at Rs. 4,067.76 crores, as of March 2021.
- This has clocked a CAGR of 34.54% from FY19’s loan assets at Rs. 2,247.2 crores.
- For FY20, their total income stood at Rs. 523.72 crores, higher than the previous year’s income at Rs. 337.11 crores.
- Their net profit for that fiscal was reported at Rs. 211.01 crores compared to Rs. 111.56 crores the previous year.
With over 181 branches in semi-urban and rural areas, they have a large presence in an underpenetrated sector and, thus, a lot of scope for growth. As of December 2020, around 99% of their AUM was from their target customers, a fact that demonstrates the high demand for their services. Their established financial performance makes their IPO a good choice. However, you shouldn’t forget that equity investments always carry considerable risks and thus, adequate research is essential.
Frequently Asked Questions
- What is the maximum amount I can invest in Aptus Value IPO?
13 lots, 546 shares, Rs. 192,738
- What is the allotment date for the IPO?
The IPO allotment will be finalised on 18 August 2021. The allotted shares will be transferred to eligible investors’ Demat account by 23 August 2021.
- Where will the shares be listed?
The Aptus IPO shares will be listed on both the NSE and BSE.