Aptus Value Housing Finance Limited Its initial public offering closed on Thursday. The issue received an overwhelming response from the investor segment. NS IPO It was subscribed almost 17.20 times at the end of the last day of subscription. Among all the investor groups, the issue was subscribed the most by non-institutional investors (NIIs) with a subscription of 33.91 times their allotted shares. Qualified Institutional Buyers (QIBs) had subscribed to the public issue 32.41 times of their allotted shares. Retail investors had subscribed only Aptus Value Housing Finance IPO 1.35 times their allotted shares at the close of the issue. The issue received bids for a total of 948,242,442 equity shares against the issue size of 55,128,500 equity shares.
The gray market premium (GMP) of Aptus Value Housing Finance IPO was listed on August 13 at Rs 190. This indicated that the shares were trading at a premium of Rs 536 to Rs 543 per equity share in the unlisted market. This is a significant increase from the previous day’s GMP which was Rs 25 and the shares were trading at a premium of Rs 371 to Rs 378 per equity share in the gray market.
With the IPO officially closing for subscription, the next order of business for the company is to shoot for allocation and listing dates. The basis of allotment is likely to be on August 18. On the other hand, the listing is likely to happen on a later date – August 24. However, it has not been confirmed yet. The issue will also initiate refunds for those investors who failed to get the shares. The lucky investors who managed to get the shares will be allotted in their respective demat accounts on August 23.
The issue size of Aptus Value Housing Finance’s IPO was Rs 2,780.05 crore, with fresh issue and offer for sale (OFS). The fresh issue was up to Rs 500 crore, while the OFS came up to Rs 2,280.05 crore with 64,590,695 equity shares. The price band of the public issue was also in the range of Rs 346 to Rs 353 per equity share, with a face value of Rs 2 per equity share. It should also be noted that the company had earlier raised around Rs 834 crore from its anchor investors.
Aptus Value Housing Finance was incorporated in 2009 as a retail-focused housing finance company targeting medium to low-income self-employed customers. The demographic of customers mainly resides in rural or semi-urban areas. The company offers a wide range of home loans, property and business loans in an effort to enable customers to buy their own homes, build residential property and even make home improvements and expansions.
The strength of the company is what gives it an edge in the market. For one, it maintains a strong network of 181 branches in 75 districts including the Union Territory of Puducherry. It also has robust credit risk management spanning from origination to collection. This assures strong asset quality. It also lives in a largely impenetrable market which gives it tremendous growth potential, not to mention its established financial track record.
Speaking about the company’s performance, Anglevan said in a note, “The company had the highest ROA among peer set at 5.7% during FY21. It is South India’s largest housing finance company in terms of AUM as on 31st March. , 2021. Its AUM has increased from March 31, 2019 to Rs 4067.76 crore as on March 31, 2021, at a CAGR of 34.54%. Additionally, the company has not disbursed any debt since its inception in March’21. It has not been restructured nor written off.It had a total branch strength of 192 as on 10th July, 2021.
“Aptus has registered strong growth in both NII and net profit of 46.2% and 54.7% between FY19-FY11. The asset quality of the company has remained largely stable despite the COVID-19 crisis with GNPA and NNPA at 0.6% and 0.5% respectively at the end of FY21,” said AngelOne.
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