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9 months after the filing of the draft document, Aadhar Housing Finance awaits Sebi’s approval for the deployment of the IPO

Almost nine months after filing the draft red herring prospectus, Aadhar Housing Finance (AHF) has yet to get the green light from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO) .

Usually, Sebi doesn’t take more than two or three months to give the green light for the IPO rollout. According to Sebi’s website, the draft document for AHF’s IPO was not cleared because the market regulator is awaiting a response from another regulator. However, Sebi’s website does not reveal the name of the other regulator or mention the information that was requested from the other regulator.

Earlier on January 24, AHF had filed the draft IPO document to raise 7,300 rupees on the market. The company plans to use the proceeds from the sale of new shares to strengthen its Class I capital base.

According to the proposal, AHF was to issue new shares worth Rs 1,500 crore via the IPO. Meanwhile, Blackstone Inc, which owns a majority stake in AHF, would have sold the existing shares worth Rs 5,800 crore had Sebi given the go-ahead.

US investment firm Blackstone had invested Rs 1,300 crore in AHF after BCP Topco, a company backed by Blackstone, acquired a 98.72% stake in AHF from Dewan Housing Finance Corporation Limited and the Wadhawan Group for around 2,200 crore rupees as of June 2019.

In 2020-21, AHF posted a net profit of Rs 340 crore, compared to Rs 189.38 crore in 2019-20. According to Care Ratings, AHF’s total income soared to Rs 1,550 crore from Rs 1,372 crore in one year.

The company has also received an “AA” rating from Care Ratings. “The ratings reflect the benefits visible after the acquisition by Blackstone Group LP in the form of capital injections, access to a broader base of banks and financial institutions with a visible improvement in lending rates while helping to eliminate the negative view of the market as a result of its association with Dewan Housing Finance Limited. Ratings take into account the sufficient capitalization and moderate leverage of AHFL, “said Care Ratings.



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