Blackstone-owned Aadhar Housing Finance will re-file its preliminary draft papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹5,000 – ₹5,500 crore through an initial public offering (IPO), according to a report by news website Moneycontrol.
The company is likely to re-file the the draft red herring prospectus (DRHP) with the regulator by early to mid February. The issue would be a combination of primary and secondary issue of shares, according to the report.
The targeted valuation for the entire firm is between ₹22,000 crore to ₹25,000 crore, it added. The IPO attempt is Aadhar’s second shot at a listing after a $1 billion IPO plan in 2022 was called off amid market volatility that followed the Russia-Ukraine war.
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Blackstone wants to capitalise on these market conditions and sell a part of its stake. Timing is key to gradually sell down, according to a report by news agency StuffsEarth. Aadhar has appointed investment banks Citi, Nomura and India’s Kotak and ICICI as advisors for its latest IPO filing, with a listing in Mumbai planned by May, the report added.
In February 2019, Blackstone entered into a definitive agreement to acquire the entire stake in Aadhar Housing Finance Limited held by the existing controlling shareholders Wadhawan Global Capital Limited and Dewan Housing Finance Limited for an undisclosed amount.
As part of the transaction, Blackstone also agreed to simultaneously infuse ₹800 crore primary equity capital into Aadhar HF to fund the company for future growth, according to Moneycontrol.
The deal would be the latest example of private equity investors looking to sell parts of their companies amid record stock markets in India – a rare bright spot for global investors. India is currently seeing record listing plans, driven by expectations of political stability and a fast-growing economy.
Established in 2010, Aadhar Housing Finance is one of the largest affordable housing finance companies in India. The company claims to have catered to over 2 lakh customers through more than 350 branches spread across the country. Most of its loans are to “economically weaker sections and low income groups”, the company says.
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Published: 30 Jan 2024, 09:23 PM IST
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