Housing finance company Aptus Value Housing Finance Limited (AVHFIL) filed its papers with the market regulator SEBI to raise around Rs 2,600 - 3,000 crore. The fund raised through the initial public offering (IPO) will be used to increase the company’s capital base and to meet future growth requirements.
The fund raise comprises a fresh issue of equity shares aggregating to 500 crore and an offer for sale of upto 6.45 crore equity shares by promoter and other selling shareholders.
The company had marquee investors like West Bridge Crossover Fund, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.
As of December 31, 2020, the company’s AUM stood at Rs 3,790.93 crore of which 72.50 per cent were loans to self-employed customers while the balance 27.50 per cent accounted for salaried individuals.
As on December 31, 2020, the company had 1,844 personnel and a network of 181 branches catering to 56,430 active loan accounts across 75 districts in Tamil Nadu (including the Union Territory of Puducherry), Andhra Pradesh, Karnataka and Telangana.
AVHFIL, whose 60 per cent customers are located in rural/semi urban regions offers home loans for purchase and self-construction of residential property, home improvement, extension loans, loan against property and business loans, primarily to first time home buyers belonging to the low and middle-income groups
The ticket sizes of its loans range between Rs 5-15 lakh with tenures ranging between 8.5 to 12.5 years.
Apart from strong presence in Tamil Nadu and other major markets in southern India, it is now intending to expand its branch network in large housing markets in the states of Maharashtra, Odisha and Chhattisgarh.
Investment Bankers appointed for the Issue are ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services Ltd and Kotak Mahindra Capital Company Limited.