Aptus Value Housing Finance's initial public offer (IPO) was subscribed 24 per cent on the first day of its issue, according to subscription data on the stock exchanges. The retail-focused housing finance company's IPO opened for bidding today, August 10, and will close on August 12- remaining open for subscribers for a period of three days. The public offer consists of a fresh issue of up to Rs 500 crore and an offer for sale of up to 6,45,90,695 equity shares.
On Tuesday, the portion reserved for the retail individual investors was subscribed 0.33 times. The portion set aside for the qualified institutional buyers or QIB was subscribed 0.25 times, while the portion reserved for non-institutional investors or NII was subscribed 0.01 times.
The company is selling shares in the price band of Rs 346 to Rs 353 per equity share, through its public offer. The minimum bid lot is 42 shares and a retail individual investor can apply up to a maximum of 13 lots of 546 shares.
Incorporated in 2009, Aptus Value Housing Finance is one of the leading housing finance companies in South India in terms of AUM. The company offers home loans to retail customers to buy homes, construct residential property, undertake house improvement and extension, among others.
It is involved in undertaking all types of lending activities such as underwriting, sourcing, valuation, as well as legal assessment of collateral, the credit assessment, and collection. Aptus Value Housing Finance seeks to utilise the funds of the IPO to augment the company's capital base and achieve share listing benefits on the stock exchanges.
'At the higher end of the price band of Rs 353, Aptus Value Housing IPO is priced at a PE ratio of ~65.4 times FY21 EPS on a post-issue basis (fully diluted). This is in-line with larger listed peer Aavas Financiers (68.07), but higher than Home First Finance (50.86 times). This IPO season, good businesses are getting valued at aggressive valuations, and Aptus Value Housing is no exception.
Given the company's strong growth in topline, good return ratios, healthy margins, lower cost ratios and leverage as compared to peers and robust growth outlook, we remain positive on the long-term prospects of this issue," SEBI-registered investment advisor INDmoney said in a report.
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