Blackstone-backed Aadhar Housing files Rs 5,000 cr IPO papers with SEBI

Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, has filed preliminary papers with capital markets regulator SEBI to raise Rs 5,000 crore through an Initial Public Offering (IPO).

The IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) component of Rs 4,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc, according to the Draft Red Herring Prospectus (DRHP) filed on Wednesday.

Currently, BCP Topco holds a 98.72% stake in Aadhar Housing Finance. The company benefits from the resources, relationships and expertise of Blackstone, one of the world's leading investment firms.

Proceeds from the fresh issue to the tune of Rs 750 crore for meeting future capital requirements towards onward lending and a portion will also be used for general corporate purposes.

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The retail-focused housing finance firm is into the low-income housing segment, serving economically weaker and low-to-middle income customers. It has a network of 471 branches, including 91 sales offices, as of September 30, 2023. Earlier, Aadhar Housing filed draft papers with Sebi in January 2021 to raise Rs 7,300 crore through an initial share sale. It had received the regulator's nod to float the public issue in May 2022, however, it did not go ahead with the launch.

ICICI Securities Ltd, Citigroup Global Markets India Private Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd, and SBI Capital Markets Ltd are the book-running lead managers to the issue.