Aptus Value Housing Finance IPO Details, Issue Price and Grey Market Premium

Details of the Aptus Value Housing Finance IPO:

1. Issue Amount : Upto ₹2,780 Cr (Fresh issue of ₹500 Cr + OFS of ₹2,280 Cr) 
2. Post Issue Implied Market Cap: Upto ₹ 17,494 Cr at Upper band 
3. Total shares on offer : Upto 79,041,562 Equity Shares at Lower band 
4. Face Value : ₹2 per share 
5. Price Band : ₹346 to ₹353 
6. Lot Size : 42 shares

Important dates for Aptus Value Housing Finance IPO:

1. IPO Open: Tuesday, August 10, 2021 
2. IPO Close: Thursday, August 12, 2021
3. Finalization of basis of allotment: 18 August 2021
4. Refunds/Unblocking ASBA fund: 20 August 2021
5. Credit of equity shares to DP account: 23 August 2021
6. Trading commences: 24 August 2021

Company Background:

The company is an entirely retail focused housing finance company primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India. It has the highest RoA of 5.7% among the Peer Set during the financial year 2021 and is one of the largest housing finance companies in south India in terms of AUM, as of March 31, 2021.

It offers customers home loans for the purchase and self-construction of residential property, home improvement and extension loans; loans against property; and business loans, which accounted for ₹2,103.21 Cr, or 51.70%, ₹890.34 Cr, or 21.89% and ₹1,074.21 Cr, or 26.41% of our AUM, as of March 31, 2021, respectively. We target first time home buyers where the collateral is a self-occupied residential property. Loans to self-employed customers accounted for ₹2,930.88 Cr, or 72.05% of our AUM, while loans to salaried customer accounted for ₹1,136.88 Cr, or 27.95%, as of March 31, 2021. As of March 31, 2021, ₹4,045.98 Cr, or 99.46% of our AUM were from customers who belonged to the low and middle income groups, earning less than ₹ 50,000 per month, and ₹1,494.8 Cr of our AUM, or 39.88% of our customers were new to credit. Further, as of March 31, 2021, ₹2,518.7 Cr, or 61.92% of our AUM were from customers located in rural regions.
(Source: CRISIL Report).

Strength of the Company

• Presence in large, underpenetrated markets with strong growth potential
• In-house operations leading to desired business outcomes
• Experienced and stable management team with marquee shareholders
• Established track record of financial performance with industry leading profitability
• Robust risk management architecture from origination to collections leading to superior asset quality

(Source : Refer RHP)

Risks

• Requires substantial capital for business and any disruption in their sources of capital could impact business adversely
• A substantial portion of its customers are first time borrowers which increases risks of non-payment or default
• Risk of default by borrowers may adversely affect its business
• The COVID-19 pandemic, or a similar public health threat, could impact its business

(Source : Refer RHP)

Financial Details of Aptus Value Housing Finance IPO:

Purpose of the Aptus Value Housing Finance IPO:

• To augment company’s capital 
• To meet company’s future capital requirements 
• Further, the Company expects that listing of the Equity Shares will enhance its visibility and brand image and provide liquidity to its Shareholders and will also provide a public market for the Equity Shares in India.

Grey Market Premium Aptus Value Housing Finance IPO:

In Grey market the premium for Aptus Value Housing Finance IPO is week and still at Zero.

Disclaimer : This article is for educational purpose only and does not provide any buy or sell recommendation