Nearly nine months after filing the draft red herring prospectus, Aadhasr Housing Finance (AHF) is yet to get the nod from the Securities and Exchange Board of India (Sebi) to roll out its initial public offering (IPO).
Usually, Sebi doesn't take more than two or three months to give the go-ahead for IPO rollout. According to Sebi's website, the draft paper for AHF IPO hasn't been cleared as the market regulator is awaiting a response from another regulatory authority. However, Sebi's website neither reveals the name of the other regulatory authority nor mentions what information has been sought from the other regulator.
Earlier on January 24, AHF had filed the IPO draft paper to raise Rs 7,300 from the market. The company has plans to use the proceeds from the sale of new shares to boost its Tier I capital base.
According to the proposal, AHF was to issue fresh shares worth Rs 1,500 crore through the IPO. Meanwhile, Blackstone Inc, which owns a controlling stake in AHF, would have sold the existing shares worth Rs 5,800 crore had the Sebi's go-ahead come through.
US-based 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 Rs 2,200 crore in June 2019.
In 2020-21, AHF posted a net profit of Rs 340 crore, up from Rs 189.38 crore in 2019-20. According to Care Ratings, AHF's total income shot up to Rs 1,550 crore from Rs 1,372 crore in a year.
The company was also given an "AA" rating by Care Ratings. "The ratings reflect the visible benefits post-acquisition by Blackstone Group LP in the form of capital infusions, access to a wider base of banks and financial institutions with a visible improvement in borrowing rates while also aiding to remove the negative market view as a result of its association with Dewan Housing Finance Limited. The ratings take into account AHFL’s sufficient capitalization and moderate gearing," said Care Ratings.
(Edited by : Anshul)
First Published: IST