Aptus Value Housing Finance India shares made a weak debut on the stock market on Tuesday. The scrip got listed at Rs 329.95 on BSE, at 6.53 per cent discount to its issue price of Rs 353. On NSE, Aptus Value Housing Finance share opened at Rs 333. 5.67 per cent down. The Rs 2,780-crore Aptus Value Housing Finance IPO opened for subscription from August 10-12. The price band was fixed at Rs 346-353 per share. Aptus Value Housing Finance IPO comprises a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale (OFS) of up to 64,590,695 equity shares by the promoter and existing shareholders. The proceeds from the offer for sale will go to the selling shareholders, while the amount received from the sale of fresh issue will be utilized for fully augmenting the tier I capital requirements of the company.
“The Rs 2,780-crore Aptus Value Housing Finance Ltd IPO issue received good response and was subscribed by 17.2x due to strong demand from QIB and NIB investors. We had given a subscribe rating to the IPO from a long term perspective and expect the company to do well in the long run given consistent strong financial performance, industry leading return ratios and good asset quality," said Jyoti Roy, DVP, equity strategist, Angel Broking Ltd.
“Given the recent volatility in the markets there is a likelihood of a tepid listing for the stock. However we would recommend investors to hold on the positions in case the stock prices dip below the IPO price on listing. We believe that the company has got strong fundamentals and should do well once the volatility in the market subsides," said Roy.
Aptus Value Housing Finance IPO received bids of over 94.82 crore shares against the total issue size of over 5.51 crore shares. The portion allocated for the qualified institutional buyers (QIBs) was subscribed 32.41 times. The quota reserved for non institutional investors was booked 33.91 times. The retail individual investors (RIIs) part was subscribed 1.35 times, the data showed.
Incorporated in 2009, Aptus Value Housing Finance is a rural-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. They conduct the operations in the states of Tamil Nadu (including the union territory of Puducherry), Andhra Pradesh, Karnataka and Telangana through 190 branches.
Aptus Value Housing Finance is one of the largest housing finance companies in south India in terms of AUM, as of Q4FY21. The Gross Loan Assets have grown at a CAGR of 34.54 per cent from Rs 2247.2 crore, in FY19 to Rs 4067.8 crore, in FY21.
Aptus Value Housing Finance has a diversified loan portfolio of home loans, loans against property and business loans, which accounted for 51.7 per cent, 21.9 per cent and 26.4 per cent of the AUM, respectively, as of Q4FY21. Focus on rural lending especially in mid and lower income group has helped the finance company to enjoy premium margins. For FY21, FY20 and FY19, the calculated net interest margin was 11.7 per cent, 11.3 per cent and 8.8 per cent, respectively.