Aavas Financiers Ltd. (Aavas), a Jaipur based home financier is coming with an IPO by offering around 21mn share between the price range Rs. 818 - 821 per share. • The issue is a combination of fresh issue and OFS. Net proceed from the fresh issue would be utilized to increase the capital base and to meet the future capital requirements arising out of growth in the business. However, it will not receive any proceeds from the OFS.
Key competitive strengths: • Strong distribution network with deep penetration serving underserved customers in rural and semi-urban markets • In-house sourcing model leading to superior business outcomes •Robust & comprehensive credit assessment, risk management and collections framework • Access to diversified and cost-effective long-term financing
Valuation and OutlookAt the higher price band of Rs. 821 per share, Aavas’s share is valued at an FY18 adjusted P/BV multiple of 5.9x, which is at a premium to its peer average of 4x
For all IPO stories, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
