Shares of Aadhar Housing Finance Ltd disappointed investors on its Dalal Street debut on Wednesday as the stock was listed at par, that is at Rs 315 on NSE, which is its issue price only. Similarly, the stock kicked off its maiden session on a flat note on BSE at Rs 314.30, a mild discount of 0.22 per cent.
The listing of Aadhar Housing Finance has been contrary to the expectations. Ahead of its listing, shares of Aadhar Housing were commanding a grey market premium of Rs 48-50 apiece over the given issue price, suggesting a listing pop of around 15 per cent for the investors. However, the premium in the unofficial market stood at Rs 75-80 on the last day of the bidding process.
The IPO of Bengaluru-based Aadhar Housing was sold in the fixed price band of Rs 300-315 per share with a lot size of 47 shares. It was open for bidding between May 8 and May 10. The company raised Rs 3,000 crore via its primary offering, which included a fresh share sale of Rs 1,000 crore and an offer-for-sale (OFS) of up to 6,34,92,063 equity shares.
The issue saw a solid bidding and was overall subscribed 25.49 times. The quota for qualified institutional bidders (QIBs) was booked a solid 72.78 times The quota for non-institutional investors was subscribed 16.80 times. The portions reserved for retail investors and employees saw bidding for 2.46 times and 6.52 times, respectively during the three-day bidding process.
Incorporated in 2010, Aadhar Housing Finance is a housing finance company targeting the lower income segment. The deep impact branches' sales offices aim to serve customers in India's tier 4 and tier 5 towns. It provides a variety of mortgage loan products for residential and commercial property purchase and construction, home improvement and extension.
ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital, Nomura Financial Advisory and SBI Capital Markets are the book running lead managers of the Aadhar Housing Finance IPO, while Kfin Technologies is the registrar.