Aptus Value Housing Finance IPO opens August 10; check price band, grey market premium, other details

Aptus Value Housing Finance India IPO will open for subscription next week on August 10, as the company looks to raise Rs 2,780 crore from the primary market.

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Aptus Value Housing Finance India IPO will open for subscription next week on August 10, as the company looks to raise Rs 2,780 crore from the primary market. The price band of the issue has been fixed at Rs 346-353 per share of face value Rs 2. Aptus’ issue will be a mix of an offer for sale (OFS) by existing shareholders, including a promoter of the company, and a fresh issue of equity shares. Aptus Value Housing Finance is an entirely retail focussed housing finance company primarily serving low and middle-income self-employed customers in the rural and semi-urban markets of India. 

Investors can bid for Aptus Value Housing Finance’s shares next week in the fixed price band in a bod lot of 42 equity shares or multiples thereafter. This translates to a minimum investment of Rs 14,826 per investor. 50% of the entire issue has been reserved for Qualified Institutional Buyers (QIB) while the retail investor portion is 35% of the entire issue, leaving 15% for Non-Institutional Investors (NII). Ahead of the issue, Aptus Value Housing Finance are seeing no premium in the grey market. 

The selling promoter, Padma Anandan currently holds a 5.19% equity stake in the company with 2.5 crore equity shares, pre-offer. According to the RHP filed by the company, Padma Anandan would sell up 25 lakh shares through the IPO. Other selling shareholders include Aravali Investment Holdings, Madison India Opportunities IV, GHIOF Mauritius, Saurabh Vijay Bhat, among others. 

“The company had the highest RoA of 6.3% among the Peer Set during the financial year 2020. They are one of the largest housing finance companies in south India in terms of AUM, as of December 31, 2020. The Gross Loan Assets have increased from Rs 1416.74 crore, as of March 31, 2018 to Rs 3790.93 crore as of December 31, 2020, at a CAGR of 38.83%,” Axis Securities said in a note. Aptus Value Housing has seen its net profit grow from Rs 66 crore in the financial year 2017-18 to Rs 211 crore at the end of the Financial year 2019-20.

Aptus Value Housing Finance counts WestBridge as its promoter. Upon listing Aptus Value Housing will join peers Aavas Financiers Limited. Aavass trades at a P/E 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 are the book running lead managers for the issue.

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