Aptus Value Housing Finance has fixed the price band for its Rs 2,780-crore initial public offering IPO) at Rs 346-353 a share. The initial share sale will be open for public subscription on August 10 and conclude on August 12.

Share Market Live

NSE

The IPO comprises a fresh issue of equity shares aggregating to Rs 500 crore and an offer-for-sale of up to 64,590,695 equity shares by the promoter and existing shareholders, the company said.

Promoters Padma Anandan, and investors Aravali Investment Holdings, JIH II LLC, GHIOF Mauritius, and Madison India Opportunities IV will be participating in the OFS.

The net proceeds from the fresh issue will be utilized towards augmenting the company's tier-1 capital requirements.

Aptus Value Housing Finance has a strong capital sponsorship by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

The IPO market lot size is 42 shares. A retail-individual investor can apply for up to 13 lots.

ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company are the investment bankers to the issue.

The company has had good asset quality with very low NPA (non-performing assets). The firm's assets under management have grown at a CAGR of 34.54 percent to Rs 4,067.76 crore during FY19-FY21. Loans to self-employed customers accounted for 72.05 percent of the assets under management as of March 2021, while the balance 27.95 percent accounted for salaried individuals.

As of March 2021, the company had a network of 190 branches catering to customers across Tamil Nadu, Puducherry, Andhra Pradesh, Karnataka and Telangana. After successfully growing its presence outside its home state, Tamil Nadu to other major markets in southern India, Aptus Value Housing Finance is now intending to expand its branch network in large housing markets in the states of Maharashtra, Odisha and Chhattisgarh.