Aavas Financiers' IPO opens with a price band of Rs 818-821. Should you subscribe?

Housing finance company Aavas Financiers' initial public offering (IPO) opened on Tuesday with a price band of Rs 818-821. The company plans to raise Rs 1,734 crore. Of this, about Rs 1,300 crore is an offer for sale, hence the infusion into the company will only be to the tune of about Rs 400 crore.

The launch comes at a time when house finance companies and NBFCs have taken a hit in trade due to investors being concerned over the liquidity situation in these companies.

Sharing more details on the business, Sunil Agarwal, director and CEO of the company, which is an erstwhile subsidiary of AU Small Finance Bank, said, "At Aavas Financiers we have created a 100 percent retail focused housing finance business. Our average ticket size is Rs 9 lakh focusing on self-employed customers. On the distribution side, we have taken a different approach, we do distribution with a 100 percent in-house team."