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Aadhar Housing Finance Ltd IPO
Status:
Overview
IPO date
08 May 2024 to 10 May 2024
Face value
₹ 10 per share
Price
₹ 300 to ₹315 per share
Issue Size
95,238,095 shares
(aggregating up to ₹ 3000 Cr)
(aggregating up to ₹ 3000 Cr)
Allotment Date
13 May 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of Aadhar Housing Finance Ltd IPO
Initial public offer of 95,255,598# equity shares of face value of Rs. 10 each ("Equity Shares") of Aadhar Housing Finance Limited* ("Company") for cash at a price of Rs. 315 per equity share (including a share premium of
Rs. 305 per equity share) ("Offer Price") aggregating to Rs. 3000.00#^ crores comprising a fresh issuance of 31,763,535# equity shares aggregating to Rs. 1000.00#^ crores by the company ("Fresh Issue") and an offer for sale of 63,492,063# equity shares aggregating to Rs. 2000.00# crores by BCP Topco Vii Pte. Ltd. ("Promoter Selling Shareholder", and such equity shares offered by the promoter selling shareholder, the "Offered Shares") ("Offer for Sale" and together with the fresh issue, the "Offer"). The offer shall constitute 22.33% of the post-offer paid-up equity share capital of the company.
The offer included a reservation of 239,726# equity shares of face value of Rs. 10 each, aggregating to Rs. 7.00^ crores (constituting up to 0.06% of the post-offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the brlms offered a discount of Rs. 23 per equity share, that is, 7.30% of the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as "Net Offer". The offer and net offer shall constitute 22.33% and 22.28%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is
Rs. 10 each. The offer price is 31.5 times the face value of the equity shares.
#Subject to finalization of basis of allotment.
^After employee discount.
Aadhar Housing Finance Ltd IPO Strategy
- Expand its Distribution Network to Achieve Deeper Penetration in key states.
- Continue to focus on its target customers and grow its customer base.
- Continue to invest in and roll out digital and technology enabled solutions across its business to improve customer experience and improve cost efficiency.
- Optimize its borrowing costs and reduce operating expenses further.
About Aadhar Housing Finance Ltd
Aadhar Housing Finance Limited was originally incorporated as Vysya Bank Housing Finance Limited' at Bengaluru, Karnataka as a Public Company, pursuant to a Certificate of Incorporation dated November 26, 1990, issued by the Registrar of Companies, Karnataka at Bangalore and commenced operations pursuant to a Certificate for Commencement of Business dated November 27, 1990, issued by the RoC. Subsequently, the name of Company was changed to DHFL Vysya Housing Finance Limited' and a fresh Certificate of Incorporation dated October 15, 2003, was issued by the RoC. Separately, an entity named Aadhar Housing Finance Private Limited' (Pre-merger AHFPL) was incorporated as a Private Limited Company, at Mumbai, Maharashtra dated May 3, 2010, issued by the Registrar of Companies, Maharashtra at Mumbai, which commenced its operations in February 2011. Pre-merger AHFPL later converted into a Public Company and its name was changed to Aadhar Housing Finance Limited', and a fresh Certificate of Incorporation dated September 3, 2013 was issued by the Registrar of Companies, Maharashtra at Mumbai. Pre-merger AHFPL was later merged into the Company pursuant to a Scheme of Amalgamation approved by the National Company Law Tribunal, Bengaluru Bench at Bengaluru, dated October 27, 2017. Pursuant to Scheme of Amalgamation, the Company name was changed to Aadhar Housing Finance Limited' and a fresh Certificate of Incorporation dated December 4, 2017, was issued by the RoC.
Aadhar Housing Finance Limited was established in 1990 as Vysya Bank Housing Finance Ltd. A separate entity, Aadhar Housing Finance Ltd (AHFL) was established in 2010 with the equity participation of IFC, and it was merged with Vysya Bank HFL in November 2017. The merged entity was renamed as Aadhar Housing Finance Ltd on 4 December 2017.
In June 2019, BCP Topco VII Pte. Limited (which is controlled by a private equity fund managed by the Blackstone Group) completed the acquisition of the stake from existing shareholders and now holds 76.48% in the company. The Company raised approximately Rs 7 billion through maiden public offering of NCDs.
AHFL is well-capitalised, with a total CRAR of 44.08% as of 31 March 2021, which is above the RBI's minimum stipulated requirement of 15%. The equity raise of Rs. 1300 Crore in FY20 by the promoter, Blackstone Group, through its private equity funds, strengthened the company's capital position to cover for any asset-side risk and to augment growth.
The company's asset quality is also comfortable, with the gross NPA and net NPA ratio at 1.21% and 0.81%, respectively, as on 31 March 2021 as against 1.29% and 0.78%, respectively, as on 31 March 2020.
AHFL has a comfortable resource profile, with the funding mix comprising Term Loans (62%), NCDs (21%), NHB refinance (16%) and subordinated debt (1%). Over the years, the company has diversified its funding mix, with the proportion of NCDs and NHB refinance increasing from 27% at the end of FY20 to 37% as at the end of FY21. Given its parentage and track record of performance, the company is well-placed in terms of raising funds for its growth.
During FY21, the company has raised Rs 1695 Crore of bank loans, Rs 1091 Crore from NHB, Rs.815 Crore of NCDs and commercial paper of Rs 50 Crore. The company has been able to take advantage of the prevailing interest rates and has been able to reduce its incremental cost of borrowings to 6.76% in FY21 from 8.89% in FY20.
AHFL is a retail-focused mortgage financier, with 80% of total AUM comprising home loans, as on 31 March 2021. The company had approximately 1.80 lakh live accounts as on 31 March 2021 with an average ticket size of Rs 8.50 lakh. Around 20% of the total AUM comprises retail loans against property (LAP) with an average ticket size of Rs. 7.17 lakhs.
The company also has a wide geographical presence across 20 states and union territories. The top two states, viz., Uttar Pradesh and Maharashtra, constitute 31% of the loan book.
AHFL is one of the largest independent affordable housing finance companies with a wide geographic presence across 20 states and union territories with 469 branches, as on 31 March 2023.
In May, 2024, the Company came up with an Initial Public Offer of 95,255,598 Equity Shares by raising equity capital aggregating Rs 3000 Crore, consisting a Fresh Issue of 31,763,535 Equity Shares aggregating to Rs 1000 Crore and an Offer for Sale of 63,492,063 Equity Shares aggregating to Rs 2000 Crore. Post IPO, the holding of Blackstone Group in the Company is 76.48%.
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Strengths vs Risks of Aadhar Housing Finance Ltd
Know the pros & cons
Strengths
HFC focused on the low income housing segment (ticket size less than Rs.1.5 million) in India with the highest AUM and net worth among our analyzed peers in Fiscal 2021, Fiscal 2022, Fiscal 2023 and nine months ended December 31, 2022 and December 31, 2023.- Seasoned business model with strong resilience through business cycles.
- Extensive branch and sales office 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.
- Experienced, cycle-tested and professional management team with strong corporate governance.
Risks
- The company Erstwhile Promoters are subject to ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact the company and the Equity Shares held by its Promoter, BCP Topco and the market price of the Equity Shares of the Company.
- The company is party to certain legal proceedings and any adverse outcome in these or other proceedings may adversely affect its business.
- The company depends on the accuracy and completeness of information provided by its potential borrowers and third-party service providers. Its reliance on any misleading information given by potential borrowers may affect its judgment of credit worthiness of potential borrowers, and the value of and title to the collateral, which may affect its business, results of operations, cash flows and financial condition.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.
- Any increase in the levels of non-performing assets in its AUM would adversely affect the company's business, results of operations, cash flows and financial condition.
- If the company fails to identify, monitor and manage risks and effectively implement its risk management policies, it could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- The company is vulnerable to the volatility in interest rates and its may faces interest rate and maturity mismatches between the company's assets and liabilities in the future which may cause liquidity issues.
- Its indebtedness and conditions and restrictions imposed by the company financing arrangements could adversely affect its ability to conduct the company's business and operations.
- The company is required to comply with regulations and guidelines issued by regulatory authorities in India, including the NHB and RBI, which may increase its compliance costs, divert the attention of the company management and subject it to penalties.
- The company assign a portion of its loan assets through direct assignments and through a co-lending arrangement to banks and other institutions. Any deterioration in the performance of any pool of receivables assigned to banks and other institutions or any decline in demand for such assignment of loan assets may adversely impact its financial performance and/or cash flows.
- The company is subject to periodic inspections by the NHB. Non-compliance with the NHB's observations made during any such inspections could subject it to penalties and restrictions which may be imposed by the NHB and/or RBI and could adversely affect its reputation, financial condition and results of operations.
- Any increase in its provisioning in the future due to the increase NPAs or the introduction of more stringent requirements in respect of loan loss provisioning, may reduce its profit after tax and adversely impact the company's results of operations.
- The company does not own its branches, sales offices, regional and corporate offices, including its Registered Office and Corporate Office. Any termination or failure by us to renew the lease/ leave and license agreements in a favorable and timely manner, or at all, could adversely affect its business and results of operations. Moreover, many of the lease/leave and license agreements entered into by it may not be duly registered or adequately stamped.
- There are existing agreements with certain entities which cannot be unilaterally terminated by it.
- Any negative events affecting the Indian real estate sector could adversely affect the value of the collateral for its loans, the company's business and result of operations.
- Its non-convertible debentures are listed on BSE and the company is subject to rules and regulations with respect to such listed non- convertible debentures. If the company fail to comply with such rules and regulations, its may be subject to certain penal actions, which may have an adverse effect on its business, reputation, results of operations, cash flows and financial condition.
- The company may not be able to identify or correct defects or irregularities in title to the properties which are made collateral to the loans offered by it to the company customers, which may adversely affect its business.
- Its Promoter will continue to exert substantial voting control over the Company after completion of the Offer, which may limit your ability to influence the outcome of matters submitted for approval of its shareholders.
- Its secretarial records for certain past allotments and changes in relation to its Registered Office are not traceable. The company cannot assure you that legal proceedings or regulatory actions will not be initiated against the Company in future in relation to such untraceable records.
- The company may be unable to protect its brand names and other intellectual property rights which are critical to its business.
- The company has entered into a number of related party transactions and may continue to enter into related party transactions, which may involve conflicts of interest.
- The bankruptcy code in India may affect its rights to recover loans from the company customers.
- Its business is primarily focused on the low income housing segment and any adverse development in this segment or in government policies affecting this segment could affect its business and results of operations.
- Statistical and industry data in this Red Herring Prospectus is derived from the CRISIL Report commissioned and paid by the company exclusively for the purpose of the Offer.
- The company may not be able to maintain its capital to risk weighted assets ratio, which could adversely affect its business.
- The company prior joint statutory auditors included a matter of emphasis in their audit report on financial statements as at and for FY ended March 31, 2021.
- Its business and result of operations are dependent on the general economic conditions and activities in certain states in which the company has concentrated presence and may be adversely affected by difficulties in expanding its business or pursuing new business opportunities in new regions and markets.
- The company may not be able to sustain its business growth, which may have a material adverse effect on its business, results of operations, cash flows and financial condition.
- The company relies significantly on its information technology systems for the company's business and operations. A failure, inadequacy or security breach in its information technology and telecommunication systems may adversely affect its business, results of operations, cash flows and financial condition.
- The company depends on third-party selling agents for referral of 66.5% of its new customers for the nine months ended December 31, 2023, who does not work exclusively for the company.
- Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The company may faces asset-liability mismatches, which could affect its liquidity and consequently affect the company operations and financial performance adversely.
- Any downgrade in its credit ratings may increase interest rates for raising new debt, refinancing its outstanding debt, which would increase the company financing costs, and adversely affect its future issuances of debt and the company's ability to borrow on a competitive basis. Any downgrade in its credit ratings may increase interest rates for raising new debt, refinancing its outstanding debt, which would increase its financing costs, and adversely affect its future issuances of debt and the company's ability to borrow on a competitive basis.
- Borrowing for the purchase or construction of property may not continue to offer borrowers the same fiscal benefits it currently offers and the housing sector may not continue to be regarded as a priority sector by the Government, which may adversely affect its business, prospects, financial condition and results of operations.
- The company may not be able to obtain, renew or maintain statutory and regulatory permits and approvals required to operate its business may materially and adversely affect the company's business and results of operations.
- The company has contingent liabilities and its financial condition may be adversely affected if these contingent liabilities materialize.
- Security breaches of customers' confidential information that the company store may expose it to liability and harm its reputation.
- Negative publicity could damage its reputation and adversely impact the company's business and financial results.
- Its insurance coverage may not be sufficient or may not adequately protect it against losses, and successful claims that exceed its insurance coverage could harm its results of operations and diminish the company financial position.
- The company, together with its Promoter, are required to comply with certain restrictive covenants in relation to its shareholding, under its financing agreements.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial condition. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.
- Annualized financial data contained in this Red Herring Prospectus may not reflect its future performance.
- Its management will have flexibility over the use of the Net Proceeds of the Fresh Issue.
- The Offer consists of an offer for sale, the proceeds of which will not be available to the company.
- The average cost of acquisition of the Promoter Selling shareholder may be below the Offer Price.
- The company expect to be classified as a passive foreign investment company, and our U.S. shareholders may suffer adverse tax consequences as a result.
- Fluctuations in the market value of its investments could adversely affect the company results of operations and financial condition.
- The outbreak of severe communicable disease or pandemic, including the resurgence of COVID-19, could have a potential impact on its business, financial condition, cash flows and results of operations.
- Pursuant to listing of the Equity Shares, the company may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions and income tax payments in the past.
Aadhar Housing Finance Ltd Peer Comparison
Understand the company’s industry standing
Aadhar Housing Finance Ltd
Aptus Value Housing Finance India Ltd
AAVAS Financiers Ltd
Face Value
10
2
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
2043.23
1093.36
1608.76
EPS-Basis
13.8
10.1
54.4
EPS-Diluted
13.4
10.1
54.3
NAV Per Share
93.7
67.1
413.6
P/E-Basic EPS
22.80
31.30
28.10
P/E-Diluted EPS
---
---
---
RONW(%)
16.5
16.1
14.1
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Enter details- PAN, Application number or DP client ID
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The IPO opens on 08 May 2024 & closes on 10 May 2024.
Aadhar Housing Finance Limited was originally incorporated as Vysya Bank Housing Finance Limited' at Bengaluru, Karnataka as a Public Company, pursuant to a Certificate of Incorporation dated November 26, 1990, issued by the Registrar of Companies, Karnataka at Bangalore and commenced operations pursuant to a Certificate for Commencement of Business dated November 27, 1990, issued by the RoC. Subsequently, the name of Company was changed to DHFL Vysya Housing Finance Limited' and a fresh Certificate of Incorporation dated October 15, 2003, was issued by the RoC. Separately, an entity named Aadhar Housing Finance Private Limited' (Pre-merger AHFPL) was incorporated as a Private Limited Company, at Mumbai, Maharashtra dated May 3, 2010, issued by the Registrar of Companies, Maharashtra at Mumbai, which commenced its operations in February 2011. Pre-merger AHFPL later converted into a Public Company and its name was changed to Aadhar Housing Finance Limited', and a fresh Certificate of Incorporation dated September 3, 2013 was issued by the Registrar of Companies, Maharashtra at Mumbai. Pre-merger AHFPL was later merged into the Company pursuant to a Scheme of Amalgamation approved by the National Company Law Tribunal, Bengaluru Bench at Bengaluru, dated October 27, 2017. Pursuant to Scheme of Amalgamation, the Company name was changed to Aadhar Housing Finance Limited' and a fresh Certificate of Incorporation dated December 4, 2017, was issued by the RoC.
Aadhar Housing Finance Limited was established in 1990 as Vysya Bank Housing Finance Ltd. A separate entity, Aadhar Housing Finance Ltd (AHFL) was established in 2010 with the equity participation of IFC, and it was merged with Vysya Bank HFL in November 2017. The merged entity was renamed as Aadhar Housing Finance Ltd on 4 December 2017.
In June 2019, BCP Topco VII Pte. Limited (which is controlled by a private equity fund managed by the Blackstone Group) completed the acquisition of the stake from existing shareholders and now holds 76.48% in the company. The Company raised approximately Rs 7 billion through maiden public offering of NCDs.
AHFL is well-capitalised, with a total CRAR of 44.08% as of 31 March 2021, which is above the RBI's minimum stipulated requirement of 15%. The equity raise of Rs. 1300 Crore in FY20 by the promoter, Blackstone Group, through its private equity funds, strengthened the company's capital position to cover for any asset-side risk and to augment growth.
The company's asset quality is also comfortable, with the gross NPA and net NPA ratio at 1.21% and 0.81%, respectively, as on 31 March 2021 as against 1.29% and 0.78%, respectively, as on 31 March 2020.
AHFL has a comfortable resource profile, with the funding mix comprising Term Loans (62%), NCDs (21%), NHB refinance (16%) and subordinated debt (1%). Over the years, the company has diversified its funding mix, with the proportion of NCDs and NHB refinance increasing from 27% at the end of FY20 to 37% as at the end of FY21. Given its parentage and track record of performance, the company is well-placed in terms of raising funds for its growth.
During FY21, the company has raised Rs 1695 Crore of bank loans, Rs 1091 Crore from NHB, Rs.815 Crore of NCDs and commercial paper of Rs 50 Crore. The company has been able to take advantage of the prevailing interest rates and has been able to reduce its incremental cost of borrowings to 6.76% in FY21 from 8.89% in FY20.
AHFL is a retail-focused mortgage financier, with 80% of total AUM comprising home loans, as on 31 March 2021. The company had approximately 1.80 lakh live accounts as on 31 March 2021 with an average ticket size of Rs 8.50 lakh. Around 20% of the total AUM comprises retail loans against property (LAP) with an average ticket size of Rs. 7.17 lakhs.
The company also has a wide geographical presence across 20 states and union territories. The top two states, viz., Uttar Pradesh and Maharashtra, constitute 31% of the loan book.
AHFL is one of the largest independent affordable housing finance companies with a wide geographic presence across 20 states and union territories with 469 branches, as on 31 March 2023.
In May, 2024, the Company came up with an Initial Public Offer of 95,255,598 Equity Shares by raising equity capital aggregating Rs 3000 Crore, consisting a Fresh Issue of 31,763,535 Equity Shares aggregating to Rs 1000 Crore and an Offer for Sale of 63,492,063 Equity Shares aggregating to Rs 2000 Crore. Post IPO, the holding of Blackstone Group in the Company is 76.48%.
Aadhar Housing Finance Ltd IPO will close on 10 May 2024.
- HFC focused on the low income housing segment (ticket size less than Rs.1.5 million) in India with the highest AUM and net worth among our analyzed peers in Fiscal 2021, Fiscal 2022, Fiscal 2023 and nine months ended December 31, 2022 and December 31, 2023.
- Seasoned business model with strong resilience through business cycles.
- Extensive branch and sales office 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.
- Experienced, cycle-tested and professional management team with strong corporate governance.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | BCP Topco VII Pte Ltd | 389683420 | 98.72 | 326191357 | 76.48 |
- The company Erstwhile Promoters are subject to ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact the company and the Equity Shares held by its Promoter, BCP Topco and the market price of the Equity Shares of the Company.
- The company is party to certain legal proceedings and any adverse outcome in these or other proceedings may adversely affect its business.
- The company depends on the accuracy and completeness of information provided by its potential borrowers and third-party service providers. Its reliance on any misleading information given by potential borrowers may affect its judgment of credit worthiness of potential borrowers, and the value of and title to the collateral, which may affect its business, results of operations, cash flows and financial condition.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.
- Any increase in the levels of non-performing assets in its AUM would adversely affect the company's business, results of operations, cash flows and financial condition.
- If the company fails to identify, monitor and manage risks and effectively implement its risk management policies, it could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- The company is vulnerable to the volatility in interest rates and its may faces interest rate and maturity mismatches between the company's assets and liabilities in the future which may cause liquidity issues.
- Its indebtedness and conditions and restrictions imposed by the company financing arrangements could adversely affect its ability to conduct the company's business and operations.
- The company is required to comply with regulations and guidelines issued by regulatory authorities in India, including the NHB and RBI, which may increase its compliance costs, divert the attention of the company management and subject it to penalties.
- The company assign a portion of its loan assets through direct assignments and through a co-lending arrangement to banks and other institutions. Any deterioration in the performance of any pool of receivables assigned to banks and other institutions or any decline in demand for such assignment of loan assets may adversely impact its financial performance and/or cash flows.
- The company is subject to periodic inspections by the NHB. Non-compliance with the NHB's observations made during any such inspections could subject it to penalties and restrictions which may be imposed by the NHB and/or RBI and could adversely affect its reputation, financial condition and results of operations.
- Any increase in its provisioning in the future due to the increase NPAs or the introduction of more stringent requirements in respect of loan loss provisioning, may reduce its profit after tax and adversely impact the company's results of operations.
- The company does not own its branches, sales offices, regional and corporate offices, including its Registered Office and Corporate Office. Any termination or failure by us to renew the lease/ leave and license agreements in a favorable and timely manner, or at all, could adversely affect its business and results of operations. Moreover, many of the lease/leave and license agreements entered into by it may not be duly registered or adequately stamped.
- There are existing agreements with certain entities which cannot be unilaterally terminated by it.
- Any negative events affecting the Indian real estate sector could adversely affect the value of the collateral for its loans, the company's business and result of operations.
- Its non-convertible debentures are listed on BSE and the company is subject to rules and regulations with respect to such listed non- convertible debentures. If the company fail to comply with such rules and regulations, its may be subject to certain penal actions, which may have an adverse effect on its business, reputation, results of operations, cash flows and financial condition.
- The company may not be able to identify or correct defects or irregularities in title to the properties which are made collateral to the loans offered by it to the company customers, which may adversely affect its business.
- Its Promoter will continue to exert substantial voting control over the Company after completion of the Offer, which may limit your ability to influence the outcome of matters submitted for approval of its shareholders.
- Its secretarial records for certain past allotments and changes in relation to its Registered Office are not traceable. The company cannot assure you that legal proceedings or regulatory actions will not be initiated against the Company in future in relation to such untraceable records.
- The company may be unable to protect its brand names and other intellectual property rights which are critical to its business.
- The company has entered into a number of related party transactions and may continue to enter into related party transactions, which may involve conflicts of interest.
- The bankruptcy code in India may affect its rights to recover loans from the company customers.
- Its business is primarily focused on the low income housing segment and any adverse development in this segment or in government policies affecting this segment could affect its business and results of operations.
- Statistical and industry data in this Red Herring Prospectus is derived from the CRISIL Report commissioned and paid by the company exclusively for the purpose of the Offer.
- The company may not be able to maintain its capital to risk weighted assets ratio, which could adversely affect its business.
- The company prior joint statutory auditors included a matter of emphasis in their audit report on financial statements as at and for FY ended March 31, 2021.
- Its business and result of operations are dependent on the general economic conditions and activities in certain states in which the company has concentrated presence and may be adversely affected by difficulties in expanding its business or pursuing new business opportunities in new regions and markets.
- The company may not be able to sustain its business growth, which may have a material adverse effect on its business, results of operations, cash flows and financial condition.
- The company relies significantly on its information technology systems for the company's business and operations. A failure, inadequacy or security breach in its information technology and telecommunication systems may adversely affect its business, results of operations, cash flows and financial condition.
- The company depends on third-party selling agents for referral of 66.5% of its new customers for the nine months ended December 31, 2023, who does not work exclusively for the company.
- Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The company may faces asset-liability mismatches, which could affect its liquidity and consequently affect the company operations and financial performance adversely.
- Any downgrade in its credit ratings may increase interest rates for raising new debt, refinancing its outstanding debt, which would increase the company financing costs, and adversely affect its future issuances of debt and the company's ability to borrow on a competitive basis. Any downgrade in its credit ratings may increase interest rates for raising new debt, refinancing its outstanding debt, which would increase its financing costs, and adversely affect its future issuances of debt and the company's ability to borrow on a competitive basis.
- Borrowing for the purchase or construction of property may not continue to offer borrowers the same fiscal benefits it currently offers and the housing sector may not continue to be regarded as a priority sector by the Government, which may adversely affect its business, prospects, financial condition and results of operations.
- The company may not be able to obtain, renew or maintain statutory and regulatory permits and approvals required to operate its business may materially and adversely affect the company's business and results of operations.
- The company has contingent liabilities and its financial condition may be adversely affected if these contingent liabilities materialize.
- Security breaches of customers' confidential information that the company store may expose it to liability and harm its reputation.
- Negative publicity could damage its reputation and adversely impact the company's business and financial results.
- Its insurance coverage may not be sufficient or may not adequately protect it against losses, and successful claims that exceed its insurance coverage could harm its results of operations and diminish the company financial position.
- The company, together with its Promoter, are required to comply with certain restrictive covenants in relation to its shareholding, under its financing agreements.
- The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other selected statistical information related to its operations and financial condition. These non-GAAP measures and statistical information may vary from any standard methodology that is applicable across the financial services industry and therefore may not be comparable with financial or statistical information of similar nomenclature computed and presented by other financial services companies.
- Annualized financial data contained in this Red Herring Prospectus may not reflect its future performance.
- Its management will have flexibility over the use of the Net Proceeds of the Fresh Issue.
- The Offer consists of an offer for sale, the proceeds of which will not be available to the company.
- The average cost of acquisition of the Promoter Selling shareholder may be below the Offer Price.
- The company expect to be classified as a passive foreign investment company, and our U.S. shareholders may suffer adverse tax consequences as a result.
- Fluctuations in the market value of its investments could adversely affect the company results of operations and financial condition.
- The outbreak of severe communicable disease or pandemic, including the resurgence of COVID-19, could have a potential impact on its business, financial condition, cash flows and results of operations.
- Pursuant to listing of the Equity Shares, the company may be subject to pre-emptive surveillance measures like Additional Surveillance Measure ("ASM") and Graded Surveillance Measures ("GSM") by the Stock Exchanges in order to enhance market integrity and safeguard the interest of investors.
- The company has experienced delays in payment of certain statutory dues including employee state insurance corporation contributions, provident fund contributions and income tax payments in the past.
The Issue type of Aadhar Housing Finance Ltd is Book Building.
The minimum application for shares of Aadhar Housing Finance Ltd is 47.
The total shares issue of Aadhar Housing Finance Ltd is 95238095.
Initial public offer of 95,255,598# equity shares of face value of Rs. 10 each ("Equity Shares") of Aadhar Housing Finance Limited* ("Company") for cash at a price of Rs. 315 per equity share (including a share premium of
Rs. 305 per equity share) ("Offer Price") aggregating to Rs. 3000.00#^ crores comprising a fresh issuance of 31,763,535# equity shares aggregating to Rs. 1000.00#^ crores by the company ("Fresh Issue") and an offer for sale of 63,492,063# equity shares aggregating to Rs. 2000.00# crores by BCP Topco Vii Pte. Ltd. ("Promoter Selling Shareholder", and such equity shares offered by the promoter selling shareholder, the "Offered Shares") ("Offer for Sale" and together with the fresh issue, the "Offer"). The offer shall constitute 22.33% of the post-offer paid-up equity share capital of the company.
The offer included a reservation of 239,726# equity shares of face value of Rs. 10 each, aggregating to Rs. 7.00^ crores (constituting up to 0.06% of the post-offer paid-up equity share capital), for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the brlms offered a discount of Rs. 23 per equity share, that is, 7.30% of the offer price to eligible employees bidding in the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as "Net Offer". The offer and net offer shall constitute 22.33% and 22.28%, respectively, of the post-offer paid-up equity share capital of the company. The face value of equity shares is
Rs. 10 each. The offer price is 31.5 times the face value of the equity shares.
#Subject to finalization of basis of allotment.
^After employee discount.