Aavas Financiers raises Rs 520 cr from 34 anchor investors, IPO opens on September 25

Housing finance company Aavas Financiers has received strong response to its anchor book on Monday, a day ahead of issue opening.

The company has garnered Rs 520.22 crore from 34 high profile anchor investors and finalised allocation of 63,36,439 equity shares to them at Rs 821 per equity share.

Sources told Moneycontrol that the anchor book of the company has seen overall demand for over $1 billion worth of shares from more than 75 investors across the US, Europe, Asia and India, which was well over 10 times the actual anchor amount.

Largest global active asset managers and Sovereign Wealth Funds (SWFs) including Abu Dhabi Investment Authority, Kuwait Investment Authority, Nomura, HSBC Halbis, Morgan Stanley, Amundi, Wesatch, BNP, Steinberg, Kotak, Buena Vista and Think participated in the anchor book.

Many large domestic mutual funds including 4 out of the top 5 such as SBI MF, ICICI Prudential MF, Reliance MF, Birla MF, Kotak MF, DSP MF, IDFC MF, Sundaram MF, Edelweiss MF and IIFL MF have participated. The anchor book also saw widespread participation from the leading life insurance companies such as SBI, Bajaj Allianz, Birla Sunlife, Kotak and Max.

The public issue comprises a fresh issue of up to Rs 400 crore and an offer for sale of up to 1,62,49,359 equity shares by Lake District Holdings (88,15,439 equity shares), Partners Group ESCL (42,81,907 equity shares)), Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1 (2,36,339 equity shares) and Partners Group Private Equity Master Fund LLC (18,79,110 shares), and Sushil Kumar Agarwal (9,11,564 equity shares) and Vivek Vig (1,25,000 equity shares).

The offer will close on September 27. The price band for the offer is at Rs 818-821 per share.

Bids can be made for a minimum lot of 18 equity shares and in multiples of 18 equity shares thereafter.

The global co-ordinators and book running lead managers to the offer are ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Spark Capital Advisors (India). The book running lead manager is HDFC Bank.