AgenciesMumbai: Blackstone-controlled Aadhar Housing Finance is set to file for a Rs 7,300-crore IPO as early as Monday, in what could be the largest public offer by a financial services firm after SBI Cards.
Blackstone, which acquired Aadhar in 2019 from the troubled Wadhawan Group for around Rs 2,200 crore, will be making more than four times return from a two-year-old investment based on this number, said people with knowledge of the matter. Blackstone currently owns 98.7 per cent of the firm and is likely to dilute around 30 per cent, they said. “It’s a fairly large transaction,” one of them said.
ICICI Sec, Nomura, Citi, SBI Cap Bankers
“You can call it a monetisation of stake by Blackstone, in addition to raising some funds for expansion,” said one of the persons cited earlier.
ICICI Securities, Nomura, SBI Capital Markets and Citigroup are among the bankers to the issue, which is expected to hit the market in the current quarter.
Blackstone declined to comment. The bankers were not immediately available for comment.
Aadhar is one of India’s largest mortgage providers to the mid- and low-income groups. It has 204 branches in 20 states and had Rs 11,400 crore assets under management at the end of March 2020. The housing loan portfolio constituted 85.3 per cent of the total portfolio, non-housing around 14.3 per cent and project loans about 0.4 per cent.
Blackstone had infused fresh equity of Rs 800 crore at the time of the acquisition in June 2019. An additional infusion of Rs 500 crore through a rights issue was made in March 2020. Consequently, the company’s capital position improved substantially, with net worth touching Rs 2,347 crore and adjusted gearing improving to 5.2 times, against Rs 860 crore and 12.1 times a year previous.
Improved Funding Access
The change in ownership to Blackstone group is likely to benefit Aadhar Housing in terms of improved funding access, rating agency Crisil said in June.
“Blackstone is also expected to maintain their significant majority ownership in, and extend required support to, Aadhar Housing,” it said while upgrading its rating on the company.
Blackstone, which acquired Aadhar in 2019 from the troubled Wadhawan Group for around Rs 2,200 crore, will be making more than four times return from a two-year-old investment based on this number, said people with knowledge of the matter. Blackstone currently owns 98.7 per cent of the firm and is likely to dilute around 30 per cent, they said. “It’s a fairly large transaction,” one of them said.
ICICI Sec, Nomura, Citi, SBI Cap Bankers
“You can call it a monetisation of stake by Blackstone, in addition to raising some funds for expansion,” said one of the persons cited earlier.
ICICI Securities, Nomura, SBI Capital Markets and Citigroup are among the bankers to the issue, which is expected to hit the market in the current quarter.
Blackstone declined to comment. The bankers were not immediately available for comment.
Aadhar is one of India’s largest mortgage providers to the mid- and low-income groups. It has 204 branches in 20 states and had Rs 11,400 crore assets under management at the end of March 2020. The housing loan portfolio constituted 85.3 per cent of the total portfolio, non-housing around 14.3 per cent and project loans about 0.4 per cent.
Blackstone had infused fresh equity of Rs 800 crore at the time of the acquisition in June 2019. An additional infusion of Rs 500 crore through a rights issue was made in March 2020. Consequently, the company’s capital position improved substantially, with net worth touching Rs 2,347 crore and adjusted gearing improving to 5.2 times, against Rs 860 crore and 12.1 times a year previous.
Improved Funding Access
The change in ownership to Blackstone group is likely to benefit Aadhar Housing in terms of improved funding access, rating agency Crisil said in June.
“Blackstone is also expected to maintain their significant majority ownership in, and extend required support to, Aadhar Housing,” it said while upgrading its rating on the company.
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1 Comment on this Story
 | Pankaj Sharma2 hours ago Black stone have deliberately remain silent on the price at which they acquired Adhar housing finance Ltd. and also about rights issue valuation at the price of share they put Rs. 500/- crores. It appears from the press note their (Black stone's) investment in the firm. is around Rs. 1,300 crores where they have more 97% stake in the company and public issue is of Rs. 7,800 crores, I presume the new promoters will retain majority stake in the company. Means, if valuation are attractive to invest in this company, Blackstone have resorted to corruption to takeovef valuable company at pee nut price, and if its not true, then it's clear cheating with investers, by investing 1300 crores rupees, new promoters are inflating valuation and recovering 7,800 crore rupees from Indian investers, for minority stake. TO SUM UP, THIS PUBLIC ISSUE OBSCURE AND MANY DETAILS ARE HIDDEN. |