Chennai-based housing finance firm Aptus Value Housing Finance (AVHFIL) which has a substantial footprint in south India, has filed papers with industry regulator Sebi to raise Rs 2,600 crore to Rs 3,000 crore via an initial public supplying (IPO).
The fund raise comprises of a fresh problem of equity shares aggregating to Rs 500 crore and an give for sale of up to 64,590,695 equity shares by the promoter and other promoting shareholders, according to a firm release. The net proceeds from the problem will be utilised towards augmenting the company’s capital base and to meet future development specifications.
Since the inception of the firm in 2010, it has had a clean asset high-quality with incredibly low NPA. As of December 31, 2020, the company’s AUM stood at Rs 3,790.93 crore, of which 72.50% had been loans to self-employed shoppers whilst the balance 27.50% accounted for salaried folks.
The firm has a workforce of 1,844 and a network of 181 branches catering to 56,430 active loan accounts across 75 districts in Tamil Nadu (which includes the Union Territory of Puducherry), Andhra Pradesh, Karnataka and Telangana. It has a robust capital sponsorship by marquee investors such as Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India, it stated.
With 60% of its shoppers positioned in rural/ semi-urban regions, AVHFIL delivers home loans for obtain and self-building of residential house, home improvement, extension loans, loan against house and organization loans, mostly to initial-time home purchasers belonging to the low- and middle-revenue groups The ticket sizes of its loans ranges in between Rs 5 lakh and Rs 15 lakh with tenures ranging in between 8.5 and 12.5 years.
After effectively developing its presence outdoors its home state Tamil Nadu to other big markets in southern India, it now intends to expand its branch network in big housing markets in Maharashtra, Odisha and Chhattisgarh.
The release stated the firm has stayed resilient and has seen constant overall performance via previous and ongoing macroeconomic challenges. As of December 31, 2020, its net NPA stood at .57%, capital adequacy at 75.03% and collection efficiency at 99.20%.
Investment bankers appointed for the Issue are ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company.