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Aadhar Housing Finance Limited IPO Review

Updated: May 8

Aadhar Housing Finance Limited IPO Review

Aadhar Housing Finance Limited (AHFL) is a beacon of financial empowerment in the Indian housing finance landscape. Established in 2010, AHFL began its journey with a mission to make homeownership accessible to the low-income segments of Indian society. The company's inception was driven by the vision to empower the underserved millions with the opportunity to own their first homes, addressing a critical need in a nation where a significant portion of the population resides in rural areas or urban slums.

AHFL's promoter family has played a pivotal role in its growth and direction. Initially, the company was backed by the Wadhawan Global Capital (WGC) group. However, in recent years, the company saw a significant change when Blackstone Group Inc., through its affiliate BCP Topco VII Pte Ltd, acquired a majority stake, making it the promoter of AHFL. This transition marked a new chapter for AHFL, infusing it with global financial expertise and a renewed commitment to its social objectives.

Rooted in the bustling city of Mumbai, Maharashtra, AHFL has expanded its reach far beyond its city of origin. Today, it boasts a vast network of branches across India, ensuring a pan-India presence that covers urban and semi-urban locations alike. This extensive network is a testament to AHFL's commitment to serving the housing finance needs of a diverse customer base, from salaried employees to self-employed individuals.

The business was started at a time when India's economic landscape was undergoing rapid transformation, and the need for affordable housing finance solutions was becoming increasingly evident. AHFL stepped in to fill this gap, focusing on small ticket mortgage loans, which are particularly suited for economically weaker and low-to-middle income customers. The company's product offerings include loans for residential property purchase and construction, home improvement and extension loans, and loans for commercial property construction and acquisition.

The reason for AHFL's establishment was to address the acute shortage of affordable housing finance options for the low-income segment of the Indian population. With a significant portion of the country's workforce being self-employed or engaged in informal sectors, traditional banking and finance institutions often overlooked this demographic. AHFL recognized the potential and the pressing need to provide tailored financial solutions that would enable homeownership, thereby contributing to the economic upliftment and improvement in the standard of living for its target customers.

Over the years, AHFL has demonstrated a consistent and resilient financial performance, navigating through various external events in the Indian economy. The company's focus on maintaining robust and comprehensive systems and processes for underwriting, collections, and monitoring asset quality has been a cornerstone of its success. Moreover, AHFL's adoption of technology-enabled services has streamlined the loan lifecycle, from origination to closure, enhancing customer reach and distribution capability.

As AHFL continues to grow and serve its purpose, it remains a key player in India's quest to provide affordable housing finance to those most need it. The company's journey is a reflection of its unwavering commitment to financial inclusion and the empowerment of India's low-income population.

Competitive Strengths

Aadhar Housing Finance Limited (AHFL) stands out as a robust entity in the affordable housing finance market, showcasing a multitude of competitive strengths that have positioned it as a leader in this segment. With a focus on leveraging technology and innovation, AHFL has carved a niche for itself by enabling aspirations and transforming them into tangible realities for numerous households across India.

Revenue, Sales, and Profit

Aadhar Housing Finance Limited, a prominent player in the housing finance sector, has demonstrated a robust financial performance. For the financial year 2022-2023, the company reported a net profit of ₹545.34 crore, which is a significant increase from the previous year. This profit was generated from a revenue of ₹2,043.52 crore, indicating a healthy profit margin and efficient operations. The company's sales also saw an upward trend, with an 8.81% rise to ₹440.30 crore in the quarter ended March 2022 compared to ₹404.66 crore in the same quarter of the previous year. These figures reflect the company's strong market presence and operational success, even amidst challenging economic conditions. The detailed financial results and annual reports can provide more comprehensive insights into the company's financial health and strategic direction.

Distribution Network and Geographical Reach

As of the latest reports, AHFL operates through a vast network of 471 branches, including 91 sales offices. These branches are strategically spread across 20 states and union territories, ensuring a strong presence in both urban and semi-urban areas. The company's operations are geographically diversified, covering over 15,000 locations, which allows it to serve a wide range of customers, particularly in Tier-2 and Tier-3 cities. The top five states by Assets Under Management (AUM) are Maharashtra, Uttar Pradesh, Rajasthan, Gujarat, and Madhya Pradesh, highlighting the company's significant penetration in these regions. AHFL's distribution network is not only a testament to its commitment to providing accessible housing finance solutions but also reflects its role in supporting regional economic development and financial inclusion. The company's strategic positioning enables it to cater to the housing finance needs of economically weaker and low-to-middle-income groups, offering them various products such as residential property purchase loans, construction loans, home improvement and extension loans, and commercial property loans. This comprehensive approach ensures that AHFL remains a key player in the affordable housing finance sector in India.

Unique Features

Aadhar Housing Finance Limited (AHFL) is a prominent housing finance company in India, focusing on providing affordable housing loans to the low-income segment of the population. With a mission to empower economically weaker sections and low-to-middle income customers, AHFL offers small ticket mortgage loans, which are pivotal in improving the standard of living for its target demographic. AHFL's financial products include loans for residential property purchase and construction, home improvement and extension loans, and loans for commercial property construction and acquisition. These offerings are designed with attractive interest rates and extended repayment periods, which can go up to 30 years, facilitating lower monthly EMIs and making home ownership more attainable for many.

In terms of technology and innovation, AHFL has implemented comprehensive systems and processes for underwriting, collections, and monitoring asset quality. These systems are technology-enabled, aiming to digitize the entire life cycle of a loan from origination to closure. The company has also developed an internal credit assessment model and digitized monthly collections to enhance processing and collection efficiency. Overall, Aadhar Housing Finance Limited stands out for its commitment to serving the underserved segment of the housing market, its expansive reach across India.

Investment in Research and Development

Aadhar Housing Finance Limited (AHFL) is a prominent player in the low-income housing finance sector in India, focusing on empowering the underserved population to own their first homes. While specific details on the company's investment in research and development (R&D) are not publicly disclosed, AHFL has demonstrated a commitment to innovation and sustainable development. The company's business model integrates social objectives, including promoting Sustainable Development Goals (SDGs), which likely involves R&D to some extent. AHFL's approach includes leveraging technology to digitize the loan lifecycle, from origination to closure, which suggests an ongoing investment in developing and improving digital infrastructure and services. Furthermore, AHFL's consistent financial performance and expansion across urban and semi-urban locations indicate a strategic investment in systems and processes that support its business model and social objectives.

Aadhar Housing Finance Limited IPO Details

  • Issue Date: The issue date in an IPO, also known as the initial offering date, is when a company's stock is first made available for public purchase. This date is a significant milestone in the process of an initial public offering, marking the transition of a company from private to public status. (Issue Date: May 8, 2024 to May 10, 2024).

  • Listing Date: The listing date refers to the day when the company's shares are officially listed and begin trading on a stock exchange. This is typically several business days (3-6 days) after the issue date after processes like share allotment and finalization are completed. On this date, investors who were allotted shares during the IPO can begin selling them, and new investors can start purchasing them on the exchange at the prevailing market price. (Listing Date: Wednesday, May 15, 2024).

  • Face Value of Shares: The face value of shares in an IPO, also known as the nominal or par value, is a predetermined fixed price set by the company and mentioned in its memorandum of association. It represents the initial capital contributed by the founders and is used for accounting and regulatory purposes. During an IPO, shares are typically offered at a price higher than the face value, which includes a premium based on market demand and the company's performance indicators. (IPO Face Value: ₹10 per share).

  • Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: ₹300 to ₹315 per share).

  • Lot Size: In an Initial Public Offering (IPO), the lot size refers to the minimum number of shares an investor can apply for. It is a pre-determined set of shares that investors must bid for, and applications must be in multiples of this lot size. The lot size ensures a standardized bidding process and helps in the fair allocation of shares among investors. (Lot Size: 47 Shares).

  • Total Issue Size: The total issue size represents the total number of shares the company is offering to raise capital through the IPO. This number is determined by the company and its advisors, considering factors like their funding needs and the expected investor demand. The total issue size is then divided by the lot size to determine the total number of lots available for purchase by investors. (Total Issue Size: 95,238,095 shares (aggregating up to ₹3,000.00 Cr)).

  • Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 63,492,063 shares of ₹10 (aggregating up to ₹2,000.00 Cr) ).

  • Fresh Issue: A Fresh Issue in the context of an Initial Public Offering (IPO) refers to the creation and sale of new shares by a company to the public. Unlike an Offer for Sale, where existing shareholders sell their shares, a Fresh Issue results in the generation of new capital for the company. This capital is typically used for growth initiatives such as expansion, research and development, or debt repayment. (Fresh Issue: 31,746,032 shares (aggregating up to ₹1,000.00 Cr)).

  • Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).

  • Listing At: The listing of shares in an IPO refers to the process where a company's shares are introduced to the public stock market, allowing investors to buy and sell the shares through a stock exchange. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).

  • Retail Shares Offered: This refers to the portion of the total shares being made available specifically for individual investors, distinct from institutional investors like banks or hedge funds. Regulatory bodies often mandate a minimum percentage of shares be reserved for retail investors, aiming to promote broader public participation in the capital markets. (Retail Shares Offered: Not more than 35% of the Net Issue).

  • QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not More than 50% of the Net Issue).

  • NII (HNI) Shares Offered: NII stands for Non-Institutional Investors, which includes High Net-worth Individuals (HNIs) who bid for shares worth more than ₹200,000. The NII category is reserved for investors who do not fall under the retail or Qualified Institutional Buyers (QIBs) categories. Typically, a certain percentage of the IPO, usually around 15%, is allocated for NIIs to ensure a wider distribution of shares. HNIs within the NII category often have a higher chance of allotment compared to retail investors, making it an attractive option for those looking to invest larger sums in an IPO. (NII (HNI) Shares Offered: Not more than 15% of the Net Issue).

Competitors of Aadhar Housing Finance Limited

Aadhar Housing Finance Limited, a prominent player in the Indian housing finance sector, faces stiff competition from various other entities in the market. The landscape of housing finance in India is quite dynamic, with several key players vying for market share. Here's an in-depth look at some of the competitors of Aadhar Housing Finance Limited.


Housing Development Finance Corporation Limited (HDFC) is one of the leading housing finance institutions in India. Established in 1977, HDFC has a widespread network across the country and offers a wide range of financial products and services. With its extensive experience and strong market presence, HDFC poses significant competition to Aadhar Housing Finance Limited.

Reliance Home Finance

Part of the Reliance Group, Reliance Home Finance offers a variety of home loan products and services. The company has been known for its customer-centric approach and innovative financial solutions, which make it a formidable competitor in the housing finance sector.

Agrim Housing Finance

Agrim Housing Finance is another competitor that specializes in providing housing loans to the unserved and underserved segments of the Indian population. Their focus on affordable housing finance helps them cater to a niche market segment, differentiating them from Aadhar Housing Finance Limited.

Other Notable Competitors

Apart from these major players, Aadhar Housing Finance Limited also competes with several other companies, including smaller regional players and new entrants in the housing finance space. Companies like Shubham Housing Development Finance Company and Mahindra Home Finance have also carved out their own space in the industry, offering competitive rates and services.

In conclusion, while Aadhar Housing Finance Limited continues to be a significant entity in the housing finance sector, it operates in a highly competitive environment with several established and emerging players. The company's ability to innovate and adapt to the changing market dynamics will be crucial in maintaining and enhancing its competitive position.


In conclusion, the Aadhar Housing Finance IPO stands as a significant event in the Indian financial markets, marking a substantial offering of ₹3,000 crores. With a price band set between ₹300 to ₹315 per share, the IPO presents an opportunity for investors to partake in the growth story of a company that has established itself as a key player in the housing finance sector, particularly focused on the low-income segment. The combination of fresh issue and offer for sale, along with the detailed schedule provided, reflects a well-structured approach towards capital raising and investor participation. As the IPO gears up for its opening on May 8, 2024, it is poised to be a noteworthy addition to the BSE and NSE, potentially paving the way for robust investment prospects in the housing finance domain.

Please Read the Detailed Review Here.

Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.


Q: What is an IPO?

An Initial Public Offering (IPO) is a process through which a privately held company offers its shares to the public for the first time and becomes a publicly traded company.


Q: How can I apply for an IPO?

You can apply for an IPO through various methods:

ASBA (Application Supported by Blocked Amount): In this method, your application money remains in your bank account until the basis of allotment is finalized.

UPI (Unified Payment Interface): You can authorize the blocking of funds in your bank account using UPI while applying for an IPO.

Q: What is ASBA?

ASBA stands for Application Supported by Blocked Amount. It allows your application money to be blocked in your bank account during the IPO bidding process. You continue to receive interest on the blocked amount.

Q: What is the difference between book building and a normal public issue?

Book building is a process where demand for securities is elicited and the price is assessed based on investor bids. In a normal public issue, the price is fixed by the issuer.

Q: Can I make payments through UPI for IPOs?

Yes, you can use UPI as a payment method for IPOs. The UPI platform blocks the funds for IPO applications after you approve the fund block mandate request.

Q: What is the minimum order quantity for an IPO?

The minimum number of shares you can apply for in an IPO is known as the minimum order quantity. It varies for each IPO.

Q: What is the cut-off price in an IPO?

The cut-off price is the price at which you bid for shares without specifying a particular price. It allows you to participate in the IPO without specifying a specific bid price.

Q: Can I revise my bids during the IPO process?

Yes, you can revise your bids multiple times before the IPO bidding period ends.

Q: Which banks offer the ASBA facility for IPOs?

Several banks, known as Self Certified Syndicate Banks (SCSBs), offer the ASBA facility. Some examples include HDFC Bank, ICICI Bank, Axis Bank, and SBI.

Q: How do I find IPO mandates on UPI apps?

You can check the list of UPI handles supported for IPO payments on the National Payments Corporation of India (NPCI) website. These handles allow you to apply for IPOs using UPI.

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