Aptus Value Housing Finance IPO Review 2021: Aptus Value Housing Finance will be the 8th IPO to hit the markets this month. The IPO will be open from August 10th to August 12th. They aim to raise Rs. ₹2,780.05 crores through a public offering.

In this article, we look into important information on the Aptus Value Housing Finance IPO and find out the possible prospects of the company. Keep reading!

Aptus Value Housing Finance IPO Review – About the Company 

Aptus Value Housing Finance Logo

Founded in 2009, Aptus Value Housing is a retail-focused housing finance company. The company offers its services to low and middle-income self-employed customers that reside in rural and semi-urban markets of India. 

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They provide loans to their customers assisting them to purchase homes, construct residential properties, improve housing and extensions. They also offer loans against property and business loans.

In addition to this, the company is also offering a range of services which include sourcing, underwriting, valuation, and legal assessment of collateral, credit assessment, and collection.

Aptus Value's assests over the year | Aptus Value Housing Finance IPO

Stockbroker AngelOne stated the following on the company,” As of December 2020, Aptus Value’s total assets under management stood at Rs. 37.91 billion. It had more than 180 branches. Aptus Value Housing finance reported a loan book of Rs. 4,000 crores as of December 2020.

They added, As per CRISIL, in FY2020, Aptus Value recorded a ROA of 6.3% owing to an optimal product mix and prudent cost control measures. During the same period, this company recorded the lowest cost to income ratio in the industry (26.4%). Both these figures were the highest among its peers. This company has raised a total of $193.7 million over 3 funding rounds.

Aptus Value Housing Finance profit over the years

The company’s AUM has grown at a CAGR of 34.5%. As of December 2020, home loans accounted for 51.76% of AUM. An important point to be noted is that 73% of the borrowers are self-employed and 66% of their borrowers are part of the low-income group.

99.42% of their customers belong to the low and middle-income group with a monthly income of less than Rs. 50,000. This may be a cause of concern in the future due to lockdowns as a major portion of their clients is self-employed.

However, despite covid, the company’s asset quality is stable GNPA and NNPA largely stable at 0.6% and 0.5% respectively for FY2021.

Grey Market Premium of Aptus Value Housing Finance

The shares of Aptus Value Housing received a 0% in the grey market before the IPO as of August 9th.

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Aptus Value Housing Finance IPO Review – Key IPO Information

The promoters of the company are M. Anadan, Padma Anandan, and Westbridge Crossover Fund, LLC.

They have appointed Citigroup Global Markets Ind. Pvt. Ltd., Edelweiss Financial Services Ltd, ICICI Securities Ltd., Kotak Mahindra Capital Company Ltd.  KFintech has been appointed as the registrar to the issue. 

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Purpose of the Aptus Value Housing Finance IPO

The proceeds from the IPO will be used for:

  • To augment the company’s capital base to meet future capital requirements.
  • To meet issue related expenditures.
  • Listing benefits on the stock exchanges.

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In Closing 

The IPO opens on 10th August and closes on 12th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Aptus Value Housing Finance Ltd.

That’s all for this post. Do let us know what you think of the Aptus Value Housing IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!