IPO Centre     07-May-24
New Issue Monitor
Aadhar Housing Finance
Largest affordable housing finance company
Extensive branch network, diversified products offering, healthy margins and stable asset quality driving growth
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Aadhar Housing Finance is a housing finance company (HFC) focused on the low-income housing segment with a ticket size of less than Rs 15 lakh. The average ticket size of loans was Rs 10 lakh, with an average loan-to-value of 58.3% end December 2023. The company has an extensive network of 487 branches, including 109 sales offices in 20 states and union territories end December 2023. The reach of the company extended to 10,926 pin codes across India end December 2023.

Aadhar 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 operates a financially inclusive and customer- centric lending business contributing significantly to the economic uplift of target customers through improvement in their standard of living.

The company has a total of 3,885 employees. Aadhar Sales and Services (ASSPL), a 100% owned subsidiary, had a total of 1,875 employees end December 2023. ASSPL provides manpower services, arranges loans, deals in properties and other financial instruments, and provides various other financial services.

Aadhar has robust and comprehensive systems and processes for underwriting, collections, and monitoring asset quality. These systems and processes are also technology enabled across front office and back office to ultimately digitize the entire life cycle of a loan from origination to closure. The company has an internally developed credit assessment model and has digitized monthly collections from customers to the extent possible to reduce processing and improve collection efficiency.

The company has migrated to a digital IT infrastructure with a view to reducing costs, carrying on real-time analysis of customer data, improving control, and underwriting functions, while increasing customer reach and distribution capability. These measures will further improve operational efficiency by improving processing times and productivity.

The company secures financing from a variety of sources including term loans and cash credit and working capital facilities, loans assignment, NCDs, refinancing from the NHB, and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic development financial institutions to meet capital requirements.

The company follows a prudent borrowing strategy of not relying on short-term loans. The entire borrowings of Rs 13127.59 crore comprised long-term borrowings with a tenor of one year or more.

The company reduced the average cost of borrowings from 8.2% end March 2021 to 7.6% end December 2023 with a weighted average tenure of outstanding borrowings at 116 months. The company enjoys long-term credit rating of AA. The company has exhibited healthy improvement in the margins to 9.0% in 9MFY2024 from 8.0% in FY2023.

Aadhar Housing Finance reported GNPA at 1.4% and NNPA at 0.9%. It reported a capital adequacy ratio of 39.70% at the end of December 2023.

BCP Topco, promoter and an affiliate of funds managed by affiliates of Blackstone Group, holds 98.72% of the pre-offer equity share capital. The company benefits from the resources, relationships, and expertise of Blackstone, one of the world‘s leading investment firms, with assets under management of US$ 1040.2 billion end December 2023.

The Offer and the Objects

The initial public offer (IPO) consists of fresh issue to raiseRs 1000 crore through issuance of 3.33 crore equity shares at the lower band of Rs 300 per share (face value Rs 10 per share) and 3.17 crore equity shares at the upper band of Rs 315 per share.

The issue also consists of an offer for sale (OFS) of Rs 2000 crore through issuance of 6.35-6.67 crore equity shares from the promoter.

The promoter shareholding in the company will decline to 83.9% post- IPO from 98.7% pre-IPO.

The issue is to be made through the book-building process. It will open on 08 May 2024 and close on 10 May 2024.

The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements. The company expects to receive the benefits of listing the equity shares on the stock exchanges, including to enhance brand image among existing and potential customers and creation of a public market for equity shares in India.


The company has emerged as leading HFC, posting a strong 17.3% CAGR growth to Rs 19865.16 crorein AUM between March 2021 to December 2023.

The branch network is widely dispersed with no state accounting for more than 14.0% in terms of gross AUM. The top two states accounted for 27.6% of the gross AUMs end December 2023.

An extensive branch and sales office network is essential for growth and maintaining a leadership position.

The low-income housing segment benefits from various government and regulatory initiatives to promote affordable housing projects and financing.

A diversified products offering allowsfor catering to the retail customer base.

The salaried segment accounts for 57.2% of the customer base and the balance is self-employed customers.

The company has implemented a robust and comprehensive credit assessment, risk management, and collections framework to identify, monitor and manage risks inherent in operations.

The loan-to-value on gross AUM on an outstanding basis was 58.3% end December 2023, with a moderate level of loan-to-value ratios across various buckets at the time of the sanctioning of the loan.

The company has implemented digital solutions across business to efficiently undertake various aspects of business.

The company operates a financially inclusive customer-centric lending business contributing significantly to the economic uplift of target customers through improvement in their standard of living. About 72.9% of the gross AUM and 85.5% of live accounts relate to customers from economically weaker and low-income groups.


The business is significantly dependent on economically weaker and low-to-middle income segments prone to natural disasters and calamities and the macroeconomic conditions in India and globally.

The top 2 states (Uttar Pradesh and Maharashtra) accounted for about 27.6% of gross AUM end December 2023, exposing to any adverse geological, ecological, economic, and/or political circumstances in those respective regions.

The company depends on third-party selling agents for referral of 66.5% of new customers for 9MFY2024. They do not work exclusively for the company.

The company does not own its branches, sales offices, regional and corporate offices, including registered office and corporate office. It needs to renew the lease and leave and license agreements in a favorable and timely manner.

The rapid growth in the housing finance industry in India in the last decade is in part due to the various benefits offered by the government and regulators. There can be no assurance that such benefits would continue at the current levels or at all.

The erstwhile promoters, DHFL and Wadhawan, who held shareholding of 80.8%, are subject to ongoing regulatory investigations by enforcement agencies and the outcome of such investigations may have an adverse impact on the company.


Aadhar Housing Finance is an HFC focused on the low-income housing segment (ticket size below Rs 15 lakh) in India and has the highest AUM and net worth among peers. The AUM of Aadhar Housing Finance is around 1.2 times Aavas Financiers’, with the second highest AUM amongst peers.

Aadhar Housing Finance has a presence in 20 states and UTs. This was the highest among the peers at the end of March 2023. It has the second highest employee count of 3,885 employees at the end of December 2023. Aadhar Housing Finance also had the highest number of live accounts at 2.33 lakh end March 2023.

The financial performance of the company has remained consistent through various external events in the Indian economy. Profit after tax before exceptional items recorded a CAGR of 28.8% between FY2021 and FY2023.

EPS on the post-issue equity for TTM ended December 2023 works out to Rs 16.9. At the price band of Rs 300 to Rs 315, the P/E works out to 17.9 to 18.7 times the EPS for TTM ended December 2023.

Post-issue, the book value (BV) will be Rs 123.1, while adjusted BV (ABV) net of net NPAs works out to Rs 118.6 per share at the upper end of the price band.The scrip is being offered at price to Adj BV multiple of 2.7 times at the upper price band.

Among peer NBFCs in the affordable housing finance segment, Aptus Value Housing Finance is trading at a P/ Adj BV multiple of 4.6 times (consolidated basis), India Shelter Finance 4.5 times (consolidated basis), Home First Finance 4.0 times,andAavaas Financiers 3.6 times (consolidated basis)

In terms of PE, Aptus Value Housing Finance is trading at 28.1 times its EPS for TTM ended December 2023, India Shelter Finance 28.3 times, Home First Finance 27.6 times and Aavas Financiers 26.4 times (consolidated basis).

Among the peers, the ROA of Aadhar Housing Finance was at 3.9% for the TTM ended December 2023. Aptus Value Housing Finance 7.4% on consolidated basis, India Shelter Finance 4.8%, Home First Finance 3.6%,and Aavas Financiers 3.2%.

The ROE for Aadhar Housing Finance was at 14.1%for the TTM ended December 2023 as compared with Aptus Value Housing Finance’s 15.8% (consolidated basis), Indian Shelter Finance’s 15.4% (consolidated basis), Home First Finance’s 14.1%, and Aavas Financiers’ 13.1%.

The AUM of Aadhar Housing Finance increased 20% year on year to Rs 19865 crore end December 2023. The AUM of Aptus Value Housing Finance galloped 28% to Rs 8072 crore end December 2023, followed by Indi Shelter Finance 42% to Rs 5609 crore, Home First Finance 34% to Rs 9014 crore and Aavas Financiers 23% to Rs 16080 crore.

The GNPA ratio of Aadhar Housing Finance was at 1.4% end December 2023. Among the peers, the GNPA ratio of Aavas Financierswas at 0.96%, Aptus Value Housing Finance 1.19%, India Shelter Finance 1.20%,and Home First Finance 1.7% end December 2023.

The NNPA ratio of Aadhar Housing Finance was at 1.00% end December 2023, while that of Aavas Financiers was at 0.69%, Aptus Value Housing Finance 0.89%, India Shelter Finance 0.90%, and Home First Finance 1.20% end December 2023.

Aadhar Housing Finance : Issue highlights

For Fresh Issue Offer size (in no of shares crore)

- On lower price band


- On upper price band


Offer size (in Rs crore)


For Offer for Sale Offer size (in no of shares crore)

- On lower price band


- On upper price band


Offer size (in Rs crore)


Price band (Rs)*


Minimum Bid Lot (in no. of shares )


Post issue capital (Rs crore)

- On lower price band


- On upper price band


Post-issue promoter & Group shareholding (%)


Issue open date


Issue closed date






Aadhar Housing Finance: Financials

2103 (12)

2203 (12)

2303 (12)

2212 (9)

2312 (9)

Income from operations






Other Income






Total Income






Interest Expenses






Other expenses






Gross profit


















PBT Before EO












PBT after EO






Provision for tax


















Adj BV (Rs)






*EPS annualised on post issue equity capital of Rs 426.47 crore of face value of Rs 10 each
Figures in Rs crore
Source: Aadhar Housing Finance Issue Prospectus

Previous News
  Aadhar Housing Finance standalone net profit rises 22.30% in the March 2023 quarter
 ( Results - Announcements 17-May-23   07:43 )
  Aadhar Housing Finance standalone net profit rises 25.97% in the June 2022 quarter
 ( Results - Announcements 13-Aug-22   08:23 )
  Aadhar Housing Finance standalone net profit rises 33.43% in the December 2022 quarter
 ( Results - Announcements 09-Feb-23   07:35 )
  Aadhar Housing Finance schedules board meeting
 ( Corporate News - 28-May-24   14:47 )
  Aadhar Housing Finance IPO subscribed 43%
 ( IPO Centre - IPO News 08-May-24   17:11 )
  Aadhar Housing Finance consolidated net profit rises 43.40% in the March 2024 quarter
 ( Results - Announcements 30-May-24   07:41 )
  Aadhar Housing Finance standalone net profit rises 28.58% in the September 2021 quarter
 ( Results - Announcements 22-Dec-21   08:35 )
  Aadhar Housing Finance IPO subscribed 1.48 times
 ( IPO Centre - IPO News 09-May-24   17:11 )
  Barometers end flat; Hero Moto jumps over 3%
 ( Market Commentary - Quick Review 08-May-24   15:58 )
  Aadhar Housing Finance standalone net profit rises 26.38% in the June 2023 quarter
 ( Results - Announcements 10-Aug-23   07:44 )
  Aadhar Housing Finance standalone net profit rises 23.60% in the March 2022 quarter
 ( Results - Announcements 17-May-22   08:12 )
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