Blackstone-Backed Aadhar Housing Finance Gets Sebi Nod To Garner Rs 5,000 Crore Via IPO

The company proposes to utilise the proceeds from the fresh issue to the tune of Rs 750 crore for meeting future capital requirements.

Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, has received Sebi's go-ahead to raise Rs 5,000 crore through an initial public offering (IPO), an update with the markets regulator showed on Monday.

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc, according to the Draft Red Herring Prospectus (DRHP).

Currently, BCP Topco holds a 98.72 per cent stake in Aadhar Housing Finance. Aadhar Housing Finance, which filed preliminary IPO papers with the markets regulator in February, has obtained its observation on April 5, an update with the Securities and Exchange Board of India (Sebi) showed.

Sebi's observation means it's a go-ahead to float the IPO. Going by the draft papers, the company proposes to utilise the proceeds from the fresh issue to the tune of Rs 750 crore for meeting future capital requirements towards onward lending and a portion will also be used for general corporate purposes.

Aadhar Housing Finance 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 is a retail-focused HFC focused on the low income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans.

It has a network of 471 branches, including 91 sales offices, as of September 30, 2023. The company benefits from the resources, relationships and expertise of Blackstone, one of the world's leading investment firms.

Aadhar Housing filed draft papers with Sebi in January 2021 to raise Rs 7,300 crore through an initial share sale. It had received the regulator's nod to float the public issue in May 2022, however, it did not go ahead with the launch.

ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd and SBI Capital Markets Ltd are the book running lead managers to the issue.

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