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Aadhar Housing Finance shares disappoint investors

Submitted by admin on May 19th, 2024

Shares of Aadhar Housing Finance Ltd became disappointing for investors following its Dalal Street Debut on Wednesday. The stock was listed at Rs 315 on NSE, which is only its issue price. Similarly, the stock started its debut on a flat note on BSE at Rs 314.30, a slight discount of 0.22 percent.

Aadhar Housing Finance Listing has been in the opposite direction. Before its listing, Aadhar Housing Finance Shares were commanding a grey market premium of Rs 48-50 per piece over the given issue price, implying a listing pop of about 15 percent for the investors. The premium in the unofficial market was at Rs 75-80 on the final day of the bidding process.

Bengaluru-based Aadhar Housing IPO was sold in the fixed price band of Rs 300-315 apiece with a lot size of 47 shares. The time for bidding was set between May 8 and May 10. The company raised Rs 3,000 crore through its primary offering, including a fresh share sale of Rs 1,000 crore and an OFS (offer-for-sale) of up to 6, 34,92,063 equity shares.
The issue witnessed a solid bidding. There was an overall subscription of 25.49 times. There was a solid booking of 72.78 times regarding the quota for qualified institutional bidders (QIBs). The quota for non-institutional investors registered 16.80 subscriptions. The portions reserved for employees and retail investors witnessed bidding 6.52 times and 2.46 times respectively, during the three-day bidding process.

Aadhar Housing Finance, which was incorporated in 2010, is a housing finance company that targets the lower-income section of society. The branches’ sales offices want to cater to the customers in tier 4 and tier 5 towns of India. It provides different mortgage loan products for residential and commercial property construction and purchase, home improvement, and extension.

Citigroup Global Markets India, ICICI Securities, Kotak Mahindra Capital, Nomura Financial Advisory, and SBI Capital Markets are the running lead managers of the Aadhar Housing Finance IPO, while Kfin Technologies works as the registrar.