Blackstone-backed Aadhar HF reduces IPO size to Rs 3,000 cr; targets early May launch at Rs 13,500-cr valuation

Blackstone-backed Aadhar HF reduces IPO size to Rs 3,000 cr; targets early May launch at Rs 13,500-cr valuation

Blackstone-backed Aadhar Housing Finance has decided to reduce the size of its initial public offer to Rs 3,000 crore from the originally planned Rs 5,000 crore as the affordable home financier gears up to launch the issue in early May, four persons in the know told Moneycontrol.

"The plan is to have a solid pop on market debut and have a successful listing, so the size of the IPO has come down. Initially, the offer for sale component was Rs 4,000 crore and now it has been revised to Rs 2,000 crore," said one of the persons quoted above.

As per the original split, the IPO consisted of a fresh issue of shares of up to Rs 1,000 crore and an offer-for-sale component of as much as Rs 4,000 crore.

He added that the anchor book has generated strong interest and may consist of a good mix of long-only and domestic funds.

"The UDRHP ( updated draft red herring prospectus) has been filed and as things stand, the IPO is likely to be launched in the second week of May ,"a second person added.

According to a third person familiar with the deal, the IPO valuation of Aadhar Housing Finance has been fixed at around Rs 13,500 crore.

A fourth person also confirmed the valuation and launch timeline plans.

All the four persons above spoke to Moneycontrol on the condition of anonymity. When contacted, Blackstone declined to comment.

"We are still in the early stages and hope to expand into infrastructure, growth equity and private credit (in India)," Jonathan D Gray, Blackstone’s President and Chief Operating Officer and one of the titans of the world of private equity, told Moneycontrol in an exclusive interview on April 3 during his India visit.

The Aadhar HF Saga

On April 5, Moneycontrol reported that market regulator Sebi had given the green signal for the Aadhar HF IPO.

The affordable home financier had refiled its draft initial share sale documents with Sebi on February 2. Moneycontrol was the first to report the re-filing plans of the firm on January 30.

ALSO READ: Blackstone-backed Aadhar HF plans to soon re-file for Rs 5,000-5,500 crore IPO

Aadhar Housing Finance had previously filed papers for an IPO in January 2021 and had received a nod from the regulator in May 2022. After a year, the validity of the approval lapsed, and the issuers were required to file documents afresh.

The objects of the fresh issue are to meet future capital requirements towards onward lending and for general corporate purposes.

ICICI Securities, Kotak Mahindra Capital, Nomura, Citi and SBI Capital are advising the lender on the listing plan.

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The retail-focused housing finance firm is into the low income housing segment, serving economically weaker and low-to-middle income customers.

It has a network of 471 branches, including 91 sales offices, as of September 30, 2023.

Another key IPO is brewing in the housing finance segment as Bajaj Finance arm Bajaj Housing Finance has kickstarted prep for an IPO targeting a valuation between $9 billion to $10 billion to comply with RBI norms. Moneycontrol was the first to report the listing plans on March 27.

ALSO READ: Bajaj Finance arm Bajaj Housing Finance starts preparation for IPO targeting $9-10 billion valuation

HDB Financial Services, an arm of HDFC Bank is also reportedly mulling an IPO. Earlier in December, private equity firm Westbridge-backed housing finance firm India Shelter Finance launched a Rs 1,200 crore IPO and made its public market debut.

Here is the stock performance of the 5 biggest firms by market cap in the NBFC category over the past month - namely Bajaj Finance, IRFC, Chola Invest, Bajaj Holdings and Shriram Finance : +5.89 per cent, +2.54 per cent, +4.82 per cent, -2.19 per cent and +3.69 per cent respectively