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Aptus Value Housing receives SEBI’s go ahead for up to Rs 3,000 crore IPO

Aptus Value Housing Finance is all set to launch its IPO in next few weeks as the company has received the green signal from markets regulator Securities Exchange Board of India (SEBI).

The housing financer has filed its draft red herring prospectus (DRHP) with the market watchdog SEBI in May 2021, and has now received the nod to float initial public offer (IPO).

Aptus Value Housing is backed by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital, Madison India. The HFC is expected to raise around Rs 2,600-3,000 crore from the primary market.

According to the DRHP filed by the company, the primary offer will consist of issuance of fresh equity worth Rs 500 crore, of face value Rs 2 each and existing shareholders and promoters will offload 64,590,695 equity shares from their stake.

Shareholders including Padma Anandan, Westbridge Crossover Fund, Aravali Investment Holdings, JIH II, GHIOF Mauritius, Madison India Opportunities IV, KM Mohandass HUF, R Umasuthan and Saurabh Vijay Bhat will offload their stake.

The company will utilise the net proceeds from the issue towards augmenting the capital base of the company and meet future growth requirements.

The company has decided to allocate 50% of the net offer to Qualified Institutional Buyers (QIBs) and 15% to non institutional investors (NIIs). Remaining 35% of the issue will be allocated to retail individual bidders (RIBs).

The company will allocate a portion of equity shares to eligible employees. However, the quantum of their allocation in the issue has not been specified further.

The company claims to have a pristing asset quality with very low NPA (nonperforming assets), since its inception in 2010 and till December 2020.

The company had an asset under management (AUM) of Rs 3,791 crore as of December 31, 2020, of which 72.5% loans were given to self employed individuals and salaried individuals constituted for remaining 27.5% loans.

As of December 31, 2020, Aptus Value Housing’s net NPA stood at 0.57%, capital adequacy at 75.03%, and collection efficiency at 99.2%, the company said in its press release.

The company has appointed ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company to manage the issue. KFin Technologies has been appointed as the registrar of the issue.

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