Aptus Value Housing Finance could see a tepid listing
Aptus Value Housing Finance is likely to list at a discount of Rs 2 or 0.57% to the issue price of Rs 353 per share.
Shares of Aptus Value Housing Finance will make its stock market debut on August 24. The company is likely to list at a discount of Rs 2 or 0.57% to the issue price of Rs 353 per share. Aptus Value Housing Finance grey market premium (GMP) has swung from a premium of 5.87% or Rs 22 per share last week to a discount of Rs 2 or 0.57% signalling a tepid listing.
According to stock exchange filing, Aptus Value Housing Finance IPO was subscribed 17.20 times. The public issue subscribed 1.35 times in the retail category, 32.41 times in QIB, and 33.91 times in the NII category by August 12, 2021, 17:00.
The Rs 2,780.05 crore issue of the non-banking finance company comprised fresh issuance of equity shares of Rs 500 crore, and an OFS (offer for sale) of Rs 2,280.05 crore by existing selling shareholders including promoter Padma Anandan, and investors Aravali Investment Holdings, JIH II LLC, GHIOF Mauritius, and Madison India Opportunities IV.
The company will utilize the net proceeds from the fresh issue towards augmenting tier I capital requirements.
Aptus Value Housing is a retail-focused housing finance company that primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India. As per the CRISIL report, it is one of the largest housing finance companies in South India in terms of AUM (asset under management) of Rs 3,790.93 crore as of December 31, 2020.
The company offers home loans to retail customers to purchase homes, construct residential property, house improvement and extension, loans against property, and business loans. It undertakes all types of lending activities such as sourcing, underwriting, valuation, and legal assessment of collateral, credit assessment, and collection.
On the financial front, the company reported a profit after tax of Rs 266.94 crore compared to Rs 111.48 crore in FY19. Since its inception, the company has not restructured any loans or written off any loans receivable. Upon listing Aptus Value Housing will join peers Aavas Financiers. Aavass trades at a P/E (price to earnings) of 67.44x while Aptus Value Housing, on the upper end of the price band, would command a P/E ratio of 63.49x.
ICICI Securities, Citigroup Global Markets, Edelweiss Financial Services, and Kotak Mahindra Capital Company were the managers of the offer.