Home loan company Aptus Value Housing Finance is set to launch its initial public offering, reported The Economic Times. The South India-based company will dilute 15-20 percent stake for Rs 3,000 crore at an enterprise value of about Rs 20,000 crore.
According to the report, the company, which is backed by, Sequoia Capital and WestBridge Capital, is looking to take advantage of the post-pandemic run up in markets which has taken the broader markets to lifetime highs.
ICICI Securities, Citigroup, Edelweiss Securities and Kotak will be the book-running lead managers and the offer is expected to be launched in the second half of FY21-22, people privy to the matter told the daily.
Moneycontrol could not independently verify the report.
Currently, the majority of stakeholders in the company are private equity firms such as Westbridge Capital, Sequoia Capital, Steadview Capital and Malabar Investment Advisors, which cumulatively hold 55 percent stake in Aptus. Reports suggest that a part of the proceeds from the issue may be used to provide an exit to these PE firms.
As per ET, the report has not been confirmed by either Aptus or any of its PE partners.
In calendar 2019, Aptus raised Rs 880 crore from its existing PE player, Westbridge Capital, while Steadview Capital and Sequoia Capital joined in as new investors. Westbridge Capital first invested in the company in 2014 brining in Rs 100 crore and another Rs 270 crore along with Caspian in a follow-up round in 2016.
As per its official website, Aptus has been formed to primarily address the housing finance needs of self-employed, low and middle-income families primarily from semi-urban and rural areas. Its loan book stands at Rs 4,000 crore, as on December 2020. Aptus currently offers loan in the range of Rs 5-25 lakh.
In FY19-20, the company reported a net profit of Rs 193 core on a total income of Rs 523 crore. Reports suggest Tamil Nadu and Puducherry account for 54 percent of its entire portfolio, while Andhra Pradesh, Telangana and Karnataka were other states it has a presence in.