Aadhar Housing Finance Limited IPO Opens Today- Check the Subscription Status and Other Details
The subscription process for the Aadhar Housing Finance IPO begins today, Wednesday, May 8, and ends on Friday, May 10. The Aadhar Housing Finance company's IPO pricing range is ₹300 to ₹315 per share. Tuesday, May 7, witnessed the ₹898 crore Aadhar Housing Finance IPO, which anchor investors funded. There is a minimum bid of 47 shares and bids can be made for multiples of 47.
Retail investors would receive 35% of the issue size from the Aadhar Housing Finance IPO, followed by non-institutional investors (NIIs) at 15% and qualified institutional buyers (QIBs) at 50%. Company employees are eligible for a discount of ₹23 per share.
Aadhar Housing Finance Limited (AHFL) is a beacon of financial empowerment in the Indian housing finance landscape. Established in 2010, AHFL began its journey with a mission to make homeownership accessible to the low-income segments of Indian society. The company's inception was driven by the vision to empower the underserved millions with the opportunity to own their first homes, addressing a critical need in a nation where a significant portion of the population resides in rural areas or urban slums.
AHFL's promoter family has played a pivotal role in its growth and direction. Initially, the company was backed by the Wadhawan Global Capital (WGC) group. However, in recent years, the company saw a significant change when Blackstone Group Inc., through its affiliate BCP Topco VII Pte Ltd, acquired a majority stake, making it the promoter of AHFL. This transition marked a new chapter for AHFL, infusing it with global financial expertise and a renewed commitment to its social objectives.
Rooted in the bustling city of Mumbai, Maharashtra, AHFL has expanded its reach far beyond its city of origin. Today, it boasts a vast network of branches across India, ensuring a pan-India presence that covers urban and semi-urban locations alike. This extensive network is a testament to AHFL's commitment to serving the housing finance needs of a diverse customer base, from salaried employees to self-employed individuals.
Aadhar Housing Finance IPO Subscription Status
By 15:09 on day one of bidding, the public issue has been subscribed 0.07 times as per the NSE Data, whereas the retail portion has been booked 0.08 times. The NII portion of the public offer was booked 0.11 times.
The retail category received 29,45,960 shares against the offered 3,49,18,334 applications. Meanwhile, the QIB category received 14,382 applications against the 1,99,53,332 shares offered. On the other hand, Non-Institutional Investors (NII) received 16,91,436 shares against offered 1,49,65,000 shares.
Aadhar Housing Finance Limited IPO Details
Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: May 8, 2024 to May 10, 2024).
Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Wednesday, May 15, 2024).
Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹300 to ₹315 per share).
Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 47 Shares).
Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 95,238,095 shares (aggregating up to ₹3,000.00 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 63,492,063 shares of ₹10 (aggregating up to ₹2,000.00 Cr)).
Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 31,746,032 shares (aggregating up to ₹1,000.00 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not more than 35% of the Net Issue).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not More than 50% of the Net Issue).
NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not more than 15% of the Net Issue).
Conclusion
In conclusion, the Aadhar Housing Finance IPO stands as a significant event in the Indian financial markets, marking a substantial offering of ₹3,000 crores. With a price band set between ₹300 to ₹315 per share, the IPO presents an opportunity for investors to partake in the growth story of a company that has established itself as a key player in the housing finance sector, particularly focused on the low-income segment. The combination of fresh issue and offer for sale, along with the detailed schedule provided, reflects a well-structured approach towards capital raising and investor participation. As the IPO gears up for its opening on May 8, 2024, it is poised to be a noteworthy addition to the BSE and NSE, potentially paving the way for robust investment prospects in the housing finance domain.
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Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.
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