Aadhar Housing Finance Limited IPO

Established in 2010, Aadhar Housing Finance Limited focuses on catering to the low-income housing segment in India. With a retail-oriented approach, the company serves economically weaker and low-to-middle income customers across 20 states and union territories.

Product Offerings

Aadhar Housing Finance Limited offers a diverse range of mortgage-related loan products, including residential property purchase and construction loans, home improvement and extension loans, as well as loans for commercial property construction and acquisition.

Operational Network

The company boasts an extensive network of 487 branches, including 109 sales offices, strategically spread across 20 states and union territories. This widespread presence ensures accessibility to its services across approximately 10,926 pin codes in India.

Financial Performance

Aadhar Housing Finance Limited has demonstrated growth in total assets, net worth, and total revenue compared to previous fiscal years. The company's profit after tax has also increased, indicating financial stability and potential for expansion.

Strengths and Weaknesses

The company's strengths include its leading position in the low-income housing segment, demonstrated resilience across business cycles, extensive network of branches, strong systems and processes, access to cost-effective long-term financing, commitment to social objectives, and experienced management team. However, challenges such as ongoing investigations involving previous owners, negative net cash flows in the past, indebtedness, regulatory compliance requirements, and listing of non-convertible debentures pose potential risks to its operations.

IPO Details

Aadhar Housing Finance Limited IPO is scheduled from May 8 to May 10, 2024, offering 95,238,095 shares at Rs.300 to Rs.315 per share. The IPO aims to raise Rs.3,000.00 Cr and will be listed on BSE, NSE. The retail investor can invest in a minimum of 1 lot (47 shares) at Rs.14,805 and a maximum of 13 lots (611 shares) at Rs.192,465. Institutional investors are allocated 50%, non-institutional investors 15%, and retail investors 35% of the share portion.

The Aadhar Housing Finance Limited IPO presents a promising investment opportunity for investors interested in the affordable housing segment. With its solid revenue stream, nationwide presence, and loyal customer base, the IPO offers potential for profit maximization following thorough evaluation. However, investors should consider both the strengths and weaknesses of the company before making investment decisions.

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