Aptus Value Housing Finance Limited saw its initial public offering come to a close on Thursday. The issue received a robust response from investor segments. The IPO was subscribed around 17.20 times at the end of the final day of subscription. Out of all the investor groups, the non-institutional investors (NIIs) had subscribed to the issue the most with a subscription of 33.91 times their allotted shares. The qualified institutional buyers (QIBs) had subscribed to the public issue 32.41 times their allotted shares. The retail investors had only subscribed to the Aptus Value Housing Finance IPO 1.35 times their allotted shares when the issue came to a close. The issue received bids for a total of 948,242,442 equity shares against an issue size of 55,128,500 equity shares.
The grey market premium (GMP) of the Aptus Value Housing Finance IPO was listed at Rs 190 on August 13. This indicated that the shares were trading at a premium of Rs 536 to Rs 543 per equity share on 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 on the grey market.
With the IPO officially closed for subscription, the next order of business for the company is to shoot for the allotment and listing dates. The basis of allotment is likely to be on August 18. The listing, on the other hand, will likely take place at a later date – August 24. However, this is not yet confirmed. The issue will also be initiating refunds to investors who failed to acquire shares. The lucky investors who managed to get the shares will see them allotted to their respective Demat accounts on August 23.
The Aptus Value Housing Finance IPO had an issue size of Rs 2,780.05 crore with a fresh issue and an offer for sale (OFS). The fresh issue aggregated up to Rs 500 crore, while the OFS came up to Rs 2,280.05 crore with 64,590,695 equity shares. The public issue also had a price band 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 mobilized around Rs 834 crore from its anchor investors earlier.
Aptus Value Housing Finance was incorporated in 2009 as a retail-focused housing finance company that targets middle to low-income self-employed customers. The demographic of customers mainly reside in rural or semi-urban areas. The company offers a wide range of home loans, loans against property and business loans in an attempt to enable customers to purchase their own homes, construct residential property and even make home improvements and extensions.
The company has strengths that give it an edge in the market. For one, it maintains a strong network of 181 branches across 75 districts, including the Union Territory of Puducherry. It also has robust credit risk management that spans from origination to collections. This leads to the assurance of strong asset quality. It also resides in a largely unpenetrated market that gives it tremendous growth potential, not to mention its established financial track record.
Speaking about the company’s performance, AngleOne said in a note, “Company had the highest RoA of 5.7% among the Peer Set during the financial year 2021. It is the largest housing finance companies in south India in terms of AUM, as of March 31, 2021. Its AUM has increased from March 31, 2019, to Rs.4067.76Cr as of March 31, 2021, at a CAGR of 34.54%. Additionally, Company has not restructured nor written off any loan since inception as on Mar’21. Its total branch tally was 192 as on July 10, 2021.”
“Aptus has posted strong growth in both NII and net profits of 46.2% and 54.7% between FY19-FY21. Despite the Covid-19 crisis the company’s asset quality has remained largely stable with GNPA and NNPA largely stable at 0.6% and 0.5% respectively at the end of FY2021,” added AngelOne.