Can you tell me about the proposed IPO of Aadhar Housing?

With the IPO market already moving rapidly in the first month of the year, Aadhar Housing Finance is also well set to hit the new issues market. The issue will be massive in the sense that it will entail raising close to Rs.7,300 crore via the initial public offer. This will include a fresh issue portion and an offer for sale portion.

The IPO Company, Aadhar Housing, is 98% owned by Blackstone Group of the US through its managed entity, BCP Topco Pte Ltd. as stated by me earlier, this IPO will be a combination of fresh issue of shares and an offer for sale. The fresh issue will be to retail and institutional shareholders to the tune of Rs.1500 crore.

At the same time, the majority shareholder BCP Topco Pte Ltd will also hive off part of its holding its shares worth Rs.5,800 crore as part of the Offer for sale or OFS. This would result in a reduction of Blackstone stake in Aadhar Housing Finance. However, considering the demand for low-cost homes, valuations are likely to be extremely buoyant.