Aptus Value Housing Finance IPO launches today; BSE lists price at Rs 353 per share

Before its Initial Public Offering (IPO) on Tuesday, the Aptus Value Housing Finance, on Monday, said it has raised Rs 834 crore from anchor investors ahead of the stock launch. The public issue is to have a price band of Rs 346 to Rs 353 a share. The IPO will conclude on August 12.

Aptus Value Housing Finance IPO launch: BSE lists price 

The Aptus Value IPO comprises a fresh issue of equity shares aggregating to Rs 500 crore along with an offer for sale of up to 64,590,695 equity shares by promoters and existing shareholders. A circular on the BSE website said that the company has decided to allocate 23,626,500 equity shares at Rs 353 per share. This aggregated the transaction size to Rs 834 crore. 

The IPO is expected to raise Rs 2,780 crore at the upper end of the price band. Investors can bid for a minimum of 42 equity shares and in multiples of 42 equity shares post that. Half of the issue size has been reserved for qualified institutional buyers (QIBs), and 35% has been reserved for retail investors. Of the total issues, 15% has been reserved for non-institutional investors. The net proceeds from the fresh issue will be utilised towards augmenting the company's tier-1 capital requirements. 

Aptus Value Housing Finance IPO backed by investors and sponsors 

Some of the participants in the anchor book are Nomura, Copthall Mauritius Investment, Steadview Capital Mauritius, Elara India Opportunities Fund, Edelweiss Mutual Fund (MF), Axis MF and DSP MF. Aptus Value Housing Finance has a strong capital sponsorship by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital, and Madison India.
Since the inception of the company in 2010, the company has had very low non-performing assets (NPAs).

Growth and reach of Aptus Value

Aptus Value's asset under management has grown at a compound annual growth rate (CAGR) of 34.54% to Rs 4,067.76 crore from FY 2019 to FY 2021. Loans to self-employed customers accounted for 72.05 % of the assets under management as of March 2021. The remaining 27.95% accounted for salaried individuals.

As of March 2021, the company had a network of 190 branches catering to customers across Tamil Nadu, Puducherry, Andhra Pradesh, Karnataka, and Telangana. ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company are the investment bankers to the issue.

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