Aptus Value Housing Finance's public issue has opened for subscription on Tuesday to raise over Rs 2,780 crore. The price band for the issue is set at Rs 346-353 per share.
The issue, which will close on August 12, consists of a fresh issue of shares worth Rs 500 crore and an offer for the sale of shares worth Rs 2,234-2,280 crore by promoters.
Aptus is a retail-focused housing finance company with customers spread throughout the low- and middle-income self-employed rural and semi-urban areas. It is one of the largest housing finance companies in South India in terms of AUM, as of FY21.
The company has reserved up to 50 percent of the offer for qualified institutional buyers, 35 percent for retail and 15 percent for non-institutional retail investors.
The company plans to use the proceeds generated by the sale of shares to augment its capital base to meet future requirements.
Angle One has recommended a 'subscribe' rating to the issue on the back of strong growth prospects and industry-leading return ratios.
Aptus has posted strong growth in both net interest income (NII) and net profits of 46.2 percent and 54.7 percent between FY19-21. "Despite the COVID-19 crisis, the company's asset quality has remained largely stable with GNPA and NNPA largely stable at 0.6 percent and 0.5 percent, respectively at the end of FY2021," the Angel One said.
At the higher end of the price band, the stock would trade at P/BV of 8.5x FY21 BVPS of Rs 341.7, which is in line with its peers.
First Published: Aug 10, 2021 9:50 AM IST
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