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Chennai-headquartered Aptus Value Housing Finance India Ltd (AVHFIL) has filed draft papers with the market regulator for an Initial Public Offering (IPO), with the company intending to use the proceeds to increase its capital base.
The housing finance company, which has the largest branch network in South India, intends to raise about ₹2,600-3,000 crore through the offering, sources close to the development said.
The IPO would comprise a fresh issuance of shares totalling ₹500 crore and an offer-for-sale of up to 6.5 crore shares by promoter and shareholders. ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services Ltd and Kotak Mahindra Capital Company Ltd are the book running lead managers to the issue, according to the Draft Red Herring Prospectus (DRHP) filed with SEBI.
Price band, soon
The price band would be decided through a book-building process, while the company would use the net proceeds to augment its capital base and meet future growth requirements, it said.
Aptus is backed by marquee investors such as WestBridge Crossover Fund (investor promoter), Malabar India Fund Ltd (an affiliate of Malabar Investments), SCI Investments VI (an affiliate of Sequoia Capital), Madison India Opportunities IV (Madison India Capital) and Steadview Capital Mauritius Limited (an affiliate of Steadview Capital Management).
Also read: Aptus Value Housing Fin raises ₹880 cr
As of December 31, 2020, the company had 1,844 personnel with a network of 181 branches catering to 56,430 active loan accounts across 75 districts in Tamil Nadu (including Puducherry), Andhra Pradesh, Karnataka and Telangana.
AVHFIL offers home loans for purchase and construction of residential property, loan against property and business loans, primarily to first time home buyers in the low and middle income groups. The company’s loan ticket-size ranges ₹5-15 lakh, with tenures of 8.5-12.5 years. About 60 per cent of its customers are located in rural and semi-urban regions.
Indian housing finance market, particularly the affordable housing, clocked a higher growth of 16-18 per cent between FY18 and FY20 on account of rise in disposable income, healthy demand from smaller city markets, attractive interest rates.
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