Aadhar Housing Finance Limited IPO
About Aadhar Housing Finance Limited IPO
Aadhar Housing Finance Limited is the largest Affordable HFC in India in terms of AUM, as of March 31, 2020. It is approximately 1.5 times larger than the second-largest peer set company based on AUM as on March 31, 2020. (Source: CRISIL) Compared to our peers, It has the largest customer base as on March 31, 2020, and have the highest disbursement for the financial year ended March 31, 2020(Source: CRISIL). Further, as of March 31, 2020, It has the most geographically diversified AUM as well as the highest efficiency in terms of operating expenditure ratios (Source: CRISIL). The company is an entirely retail-focused affordable housing finance company, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans. The average ticket size of loans was ₹ 0.85 million, with an average loan-to-value of 56.73%, as of September 30, 2020. As of September 30, 2020, 64.83% and 35.17% of Gross AUM comprised loans to salaried customers and to self-employed customers, respectively.
Aadhar Housing Finance Limited 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 company financial performance has remained consistent and resilient through various external events in the Indian economy. The Gross AUM increased from ₹79,659.2 million in FY2018, to ₹100,157.5 million in FY2019 and ₹114,316.6 million in FY2020. During these periods, the Indian economy and the banking and finance industry in India were adversely impacted by various events such as demonetization and the introduction and roll-out of a nationwide GST; defaults involving large non-bank finance companies; and, most recently, the COVID-19 pandemic.
Aadhar Housing Finance Limited has made social objectives one of the core objectives of our business model. The company operates a financially inclusive customer-centric lending business and believe that our business model contributes significantly to the economic upliftment of target customers by contributing to an improvement in their standard of living. In addition to our customer-facing social objectives, The company also implemented social objectives in other aspects of our business. The Company presence in rural and semi-urban locations across India provides a source of employment in these locations.
Aadhar Housing Finance Limited has an extensive network of 292 branches, as of September 30, 2020. The branches are spread across 20 states and union territories, operating in approximately 12,000 locations across India, as of September 30, 2020. The company branch network is widely dispersed with no state accounting for more than 16.2% in terms of Gross AUM. The company believes that our diversified reach is well-positioned to meet the specific needs of target customers across geographies, in urban, semi-urban and rural areas. Further, as a result of geographical spread, the top five states in terms of contribution to AUM collectively accounted for 62% of AUM as of March 31, 2020, which is the lowest concentration level amongst competitors. (Source: CRISIL)
Promoters
- BCP Topco is the Promoter of Aadhar Housing Finance Limited
Financials
Competitive Strengths
The company believe that its position as a leading affordable housing finance company is founded on the following competitive strengths
- Largest affordable housing finance company with best-in-class metrics in the fastest-growing sub-segment of the Indian mortgage market;
- Extensive branch network, geographical penetration and sales channels which contribute significantly to loan sourcing and servicing;
- Robust, comprehensive systems and processes for underwriting, collections and monitoring asset quality;
- Access to diversified and cost-effective long-term financing with a disciplined approach to asset liability and liquidity management;
- Social objectives are one of the core components of our business model; and
- Experienced, cycle-tested and professional management team with strong corporate governance
IPO Details
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Book Running Lead managers
- ICICI Securities Limited
- Citigroup Global Markets India Private Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- SBI Capital Markets Limited
- KFin Technologies Private Limited
Company Address
Registered Office:
2nd floor, No. 3, JVT Towers, 8th ‘A’, Main Road,
S.R. Nagar,
Bengaluru 560 027,
Karnataka, India;
Corporate Office:
201, 2nd Floor,
Raheja Point-1,
Near SVC Tower, Nehru Road,
Vakola, Santacruz (E),
Mumbai 400 055, Maharashtra, India;
Telephone: +91 22 3950 9900;
Contact Person: Sreekanth V.N., Company Secretary and Compliance Officer
E-mail: [email protected]; Website: www.aadharhousing.com
Corporate Identity Number: U66010KA1990PLC011409
