Affordable housing has been a big theme in recent years. Another housing finance company intends to list on bourses. Aptus Value Housing Finance IPO will open on August 10 and conclude on August 12. It has set its price band at Rs 346-353. The initial public offering (IPO) comprises of fresh issue of equity shares aggregating to Rs 500 crore. At the upper end of the price band, the IPO is expected to fetch Rs 2,780 crore.
The net proceeds from the fresh issue will be utilised towards augmenting the company's tier-1 capital requirements. Aptus Value Housing Finance has a strong capital sponsorship by marquee investors like Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India. M Anandan, CMD, and P Balaji, CFO of Aptus Value Housing Finance, spoke to CNBC-TV18.
Anandan said, “We see good growth opportunity going forward, despite headwinds including COVID. Our focus is small home loans ranging between Rs 5 lakh to 25 lakh, and average ticket size is about Rs 8-9 lakh largely for self-construction of houses in tier III and tier IV cities with an average EMI of about Rs 12,500.”
On diversification, Anandan said, “We are looking to diversify into the other states. Our philosophy is that wherever we operate, we operate very intensely and deeply with an aim to become market leader in that particular state. Being headquartered in Chennai, Tamil Nadu, we started in Tamil Nadu and progressively expanded to four southern states and after this, we have started looking at three more states namely Maharashtra, Odisha and Chhattisgarh.”
On business loans, he said, “It is 100 percent subsidiary company, an NBFC owned by the parent housing loan company and these are mainly only to business, not for consumption like marriage or education etc. That is housed as an independent company, 100 percent subsidiary company.”
On asset quality, P Balaji said, “Our NPAs have always been less than 1 percent right from the inception. It was 0.7 percent in FY20 and in FY21, it was 0.68 percent. We are confident of maintaining this kind of NPAs which is less than 1 percent in the years to come as well.”
(With inputs from PTI)
For full management commentary, watch the video
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(Edited by : Dipika)
First Published: Aug 10, 2021 10:42 AM IST
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