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Wednesday, September 22, 2021

Aptus Value Housing Finance IPO: Everything you need to know

Aptus Value Housing Finance India IPO: The Rs 2,780 crore initial public offering (IPO) of Aptus Value Housing Finance India will be available from August 10-12, 2021. It has a price band of Rs 346-353 per share.

By: Express Web Desk | New Delhi |
Updated: August 10, 2021 7:53:08 pm
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Aptus Value Housing Finance India IPO: The initial public offering (IPO) of Aptus Value Housing Finance India will open for subscription on Tuesday, August 10, 2021, at a price band of Rs 346-353 per share of the face value of Rs 2 each. The offer will be available till Thursday, August 12, 2021.

Through the offer, Aptus Value Housing Finance India aims to raise Rs 2,780 crore with the help of a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale (OFS) of up to 64,590,695 equity shares by the promoter and existing shareholders.

Aptus Value Housing Finance has a strong capital sponsorship by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.

The net proceeds from the fresh issue will be utilised towards augmenting the company’s tier-1 capital requirements.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Investors who wish to subscribe to the Aptus Value Housing Finance India IPO can bid in a lot of 42 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,826 to get a single lot of Aptus Value Housing Finance India. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Friday, August 13, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company are the book running lead managers to the IPO while KFin Technologies is the registrar of the issue.

Before heading into the IPO, Aptus Value Housing Finance India raised over Rs 834 crore (Rs 8,34,01,54,500) from 36 anchor investors in lieu of 2,36,26,500 equity shares at Rs 353 each, data from the stock exchanges showed.

The anchor investors include the likes of Nomura, Copthall Mauritius Investment, Steadview Capital Mauritius, Elara India Opportunities Fund, Edelweiss Mutual Fund (MF) Axis MF and DSP MF among others.

The research team at Geojit Financial Services and IIFL Securities in their respective IPO notes have recommended a “Subscribe” on a long-term basis to the offer.

Geojit Research in its IPO report said, “At the upper price band of Rs 353, AVHFIL (Aptus Value Housing Finance India Ltd) is available at P/BV of 8.8x (FY21) which appears to be fully priced. We assign a “Subscribe” rating for the issue on a long-term basis considering its strong return ratios, impressive growth and attractive margins.”

IIFL Research in its report noted, “At the upper price band, Aptus Value Housing Finance is demanding a PE multiple of ~63.5x of FY21 earnings which is lower than the industry average of 67.44x. Considering the future growth potential of the housing finance industry coupled with revenue from operation, EBITDA and PAT growth of 40.2 per cent, 41.7 per cent and 54.7 per cent CAGR, respectively during FY19 to FY21, robust risk management strategy that reduces slippages, plans of reducing cost of borrowing and entering under penetrated market with good scope for expansion, we recommend ‘Subscribe’ to the issue with a long-term perspective.”

The share allotment is likely to take place on August 18, 2021, and the shares are expected to be listed on August 24, 2021, according to the timeline given in the red herring prospectus (RHP).

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