Retail investors had a subdued response to the issuance, with executions at just 2.57x, but final subscriptions at 26.7x.
Aadar Housing Finance’s initial public offering (IPO) quietly entered the stock exchanges on May 15 as a stock listed at Rs 314 against the issue price of Rs 315.
In particular, retail investors’ reaction to this stock was modest, with a fill ratio of just 2.57x. However, according to chittorgarh’s data, the final number of subscriptions increased by 26.7 times.
The issue sought to raise Rs 3,000 crore through a combination of fresh issue and offering component (OFS).
The Rs 3,000-crore bookbuild issue consisted of new issues worth Rs 1,000 crore and OFS worth Rs 2,000 crore, with price ranges of Rs 300-315.
Kotak Mahindra Capital, Citigroup Global Markets, SBI Capital Markets and Nomura Financial Advisory & Securities acted as lead book-running managers, while Kfin Technologies acted as registrar for the issue.
Purpose of IPO
The company proposed to utilize the net proceeds of Rs 1,000 crore to meet future capital requirements towards forward financing along with general corporate purposes.
Company financial situation
The company recorded a revenue of Rs 2,043 crore in FY23 compared to Rs 1,728 crore in FY22. The company’s profit after tax (PAT) increased to Rs 545 million in FY23 compared to Rs 446 million in FY22. Overall, revenue and PAT increased by 18.22% and 22.22%, respectively.
