Aptus Value Housing Finance lists at nearly 6% discount

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Shares of non-banking finance company Aptus Value Housing Finance did a tepid debut on Tuesday. The stock opened for trading at Rs 333 apiece on the National Stock Exchange, compared to the issue price of Rs 353 marking a discount of 5.67% or Rs 30 per share. On the BSE the stock got listed at Rs 329.95, a discount of Rs 23.05 or 6.53%.

According to stock exchange filing, Aptus Value Housing Finance IPO was subscribed 17.20 times. The public issue subscribed 1.35 times in the retail category, 32.41 times in QIB, and 33.91 times in the NII category by August 12, 2021, 17:00.

The Rs 2,780.05 crore issue of the non-banking finance company comprised fresh issuance of equity shares of Rs 500 crore, and an OFS (offer for sale) of Rs 2,280.05 crore by existing selling shareholders including promoter Padma Anandan, and investors Aravali Investment Holdings, JIH II LLC, GHIOF Mauritius, and Madison India Opportunities IV.

The company will utilize the net proceeds from the fresh issue towards augmenting tier I capital requirements.

Aptus Value Housing is a retail-focused housing finance company that primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India. As per the CRISIL report, it is one of the largest housing finance companies in South India in terms of AUM (asset under management) of Rs 3,790.93 crore as of December 31, 2020.

The company offers home loans to retail customers to purchase homes, construct residential property, house improvement and extension, loans against property, and business loans. It undertakes all types of lending activities such as sourcing, underwriting, valuation, and legal assessment of collateral, the credit assessment, and collection.

On the financial front, the company reported a profit after tax of Rs 266.94 crore compared to Rs 111.48 crore in FY19. Since its inception, the company has not restructured any loans or written off any loans receivable. Upon listing Aptus Value Housing will join peers Aavas Financiers. Aavass trades at a P/E (price to earnings) of 67.44x while Aptus Value Housing, on the upper end of the price band, would command a P/E ratio of 63.49x.