Aptus Value Housing makes weak stock market listing; stock opens at discount to IPO price

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August 24, 2021 9:52 AM

Aptus Value Housing Finance shares made a muted listing on the stock exchanges today, continuing the recent trend of discounted listing on Dalal Street.

Aptus Value HousingAptus Value Housing shares list at discount to IPO price. (Image: REUTERS)

Aptus Value Housing Finance shares made a muted listing on the stock exchanges today, continuing the recent trend of discounted listing on Dalal Street. Shares of Aptus Value opened for trade at Rs 329.95 per share down 6.53% or Rs 23 apiece from the upper end of the IPO price band of Rs 353 per share. The stock opened with losses despite the positive momentum seen in domestic benchmark indices. The retail-focused housing finance company had entered primary markets to raise Rs 2,780 crore through the IPO earlier this month. Of the total issue size, Rs 500 crore was a fresh issue of equity shares while the remaining was an OFS by existing investors. Aptus Value Housing serves low and middle income self-employed rural and semi-urban customers. The company had a market capitalization of Rs 16,351 crore on listing.

Check live price: Aptus Value Housing Finance

The IPO of Aptus Value Housing Finance was oversubscribed by all pockets of investors. Half of the entire IPO was reserved for Qualified Institutional Buyers (QIB) who subscribed their portion 32.41 times. Retail investors had 35% of the IPO reserved for themselves and subscribed to the issue 1.35 times. Non-Institutional Investors (NII) bid for the IPO 33.91 times the portion reserved for them.

Aptus Value Housing Finance provides small loans for the purchase and self-construction of residential property, home improvement and extension loans. The company offers no loans of more than Rs 25 lakh. Over financial year 2019 and 2021, Aptus Value Hosuing’s NII/operating profit/PAT grew at a CAGR of 43.9%/ 51.0% / 54.7% to Rs 430.1 crore / Rs 350.9 crore/ Rs 266.9 crore, respectively. In the previous financial year, its calculated NIM stood at 10.5% with an average yield at 15.5%, said analysts at Ventura Securities. The brokerage firm valued the IPO at the upper end of the price band at 8.6x FY21 P/BV. 

Analysts at Marwadi Financial Services had given a ‘Subscribe’ rating to the issue, saying that the company has a presence in large underpenetrated markets with strong growth potential and is available at a reasonable valuation as compared to its peers. “Considering the FY-21 adjusted BVPS of Rs 50.03 on post-issue basis, the company is going to list at a P/B of 7.06 with a market cap of Rs 1,74,940 mn, while its peer namely Aavas Financiers is trading at a P/B of 8.47,” they added.

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