Check Aptus Value Housing Finance IPO (Aptus Housing IPO) details. Find IPO Date, Price, Allotment Date, Grey Market Premium GMP, Listing Date, Analysis and Review

Aptus Value Housing Finance IPO – Issue Details and Review

Check Aptus Value Housing Finance IPO (Aptus Housing IPO) details. Find IPO Date, Price, Allotment Date, Grey Market Premium GMP, Listing Date, Analysis and ReviewAptus Value Housing Finance India Ltd IPO (Aptus Value Housing Finance IPO) Details

Chennai based Aptus Value Housing Finance is coming up with IPO that would open for subscription on 10th August 2021. Aptus Value Housing India Limited is a retail-focused housing finance company which primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India. Company has posted strong and margins growth in the last 3 years. Should you invest in Aptus Value Housing Finance IPO? What are the risk factors in this IPO?

Also Read: Specialty Chemicals company Chemplast Sanmar IPO opens on 9th August – Should you invest or avoid?

About Aptus Value Housing Finance India Limited

They are an entirely retail focused housing finance company primarily serving low- and middle-income self-employed customers in the rural and semi-urban markets of India. Company had the highest RoA of 5.7% among the Peer Set during the financial year 2021. They are one of the largest housing finance companies in south India in terms of AUM. Its AUM have increased from Rs 22,472.33 Mn as on 31-Mar-2019 to Rs 40,677.62 Mn as on 31-Mar-2021. Its gross NPAs expressed as a percentage of our Gross Loan Assets was 0.68%, 0.70% and 0.40% for years FY21, FY20 and FY19 respectively.

They offer customers home loans for the purchase and self-construction of residential property, home improvement and extension loans; loans against property; and business loans. They only offer loans to retail customers and do not provide any loans to builders or for commercial real estate. They target first time home buyers where the collateral is a self-occupied residential property.

Aptus Value Housing Finance IPO details

IPO Opening Date 10-Aug-21
IPO Closing Date 12-Aug-21
Issue Type Book Built Issue IPO
Face Value Rs 2 per equity share
IPO Price band Rs 346 to Rs 353 per equity share
Lot Size 42 Shares
Min Order Quantity 42 Shares
Listing at BSE and NSE
Issue Size Total Size: Rs 2,780.05 Crores
i) OFS: Rs 2,280.05 Crores
ii) Fresh Issue: Rs 500 Crores

Aptus Value Housing Finance IPO RHP link

What are Aptus Value Housing Finance India Limited competitive strengths?

1) It is one of the largest housing finance companies in South India in terms of AUM.

2) Company has strong network of 181 branches across 75 districts and union territory of Puducherry.

3) It has presence in large, underpenetrated market with strong growth potential.

4) It has robust credit risk management from origination to collections leading to assure strong asset quality.

5) company has established financial performance track record.

You may also like: Car Trade Tech IPO opens on 9th August, Should you subscribe?

What are the Objects of the Offer?

It has two objects of the offer for the IPO size of Rs 2,780.05 Crores.

1) Offer for Sale (OFS) Rs 2,280.05 Crores: Under OFS selling shareholders would sell the shares and company would not get any proceeds from the issue.

2) Fresh issue for Rs 500 Crores: Fresh issue would be utilized for the following:

i) To augment company’s capital base to meet future capital requirements.

ii) To meet issue related expenditures.

iii) To achieve share listing benefits on the stock exchanges.

Who is the promoter of Aptus Value Housing Finance India Limited?

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

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3 years.

Financial Year ending / Period ending (Amt in Mns)
Particulars FY19 FY20 FY21
Total Assets 23,276.8 37,467.2 45,201.6
Revenues 3,371.1 5,237.2 6,552.4
Profit After Tax 1,114.8 2,110.0 2,669.4
Profit % 33.07% 40.29% 40.74%

Why to invest in Aptus Value Housing Finance IPO?

Here are the positive factors in this company.

1) Aptus Value Housing is a retail-focused housing finance company which serves low and middle-income self-employed customers in the rural and semi-urban markets of India. It is the largest housing finance company in South India. Company has presence in large and unpenetrated market with strong growth potential.

2) Company posted strong revenue growth in the last 3 years. Its FY19, FY20 and FY21 revenues are at Rs 337.1 Crores, Rs 523.7 Crores and Rs 655.2 Crores respectively.

3) Company generated strong growth in profits in the last 3 years. Its FY19, FY20 and FY21 revenues are at Rs 111.4 Crores, Rs 211 Crores and Rs 266.9 Crores respectively.

Risk Factors in Aptus Value Housing Finance IPO

1) Current Covid-19 pandemic has adverse effects on its business. Such pandemics can affect in future too.

2) Company requires substantial capital for its business. Any disruption in its sources of capital can adversely affect its business.

3) Its inability to meet its obligations, including financial and other covenants under its debt finance arrangements could adversely affect its business.

4) NHB consent to undertake the offer is subject to certain conditions.

5) The risk of non-payment or default by loan borrowers may adversely affect its business.

5) Majority of its customers are first time borrowers which increase risks of non-payment or default.

6) Company is affected by volatility in interest for both its lending and treasury operations which could cause its net interest income to vary and consequently affect its profitability

7) Currently it has credit rating of “A” from ICRA and CARE. Any downgrade in its credit ratings can increase its borrowing costs and affect its ability to obtain financing. This can adversely affect company business.

8) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

Aptus Value Housing Finance IPO dates for subscription, Allotment and Listing

Offer Open 10-Aug-21
Offer close 12-Aug-21
Finalization of Allotment 18-Aug-21
Initiation of Refunds 20-Aug-21
Credit to Demat Account 23-Aug-21
IPO Shares Listing Date 24-Aug-21

Is Aptus Value Housing Finance IPO Price is underpriced or overpriced?

Its IPO price band is Rs 346 to Rs 353 per share.

1) On the upper price band of Rs 353 and last 3 years average EPS of Rs 4.83, the P/E ratio works out 73x.

2) If we take FY21 EPS of Rs 5.55, the P/E ratio works out 63.6x.

3) Means company is asking issue price in the P/E range of 63.6x to 73x.

4) Currently we have only one listed peer (who is in similar business) Aavas Financiers which is trading at 67.4x. While one cannot compare only with one company for IPO Price valuation purpose, considering P/E of 63.x to 73x, the IPO share price is fully priced.

What is Aptus Value Housing Finance IPO GMP?

Aptus Value Housing Finance IPO GMP is not yet known as we could not see any trades happening. GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about IPO price as it is unorganized market.

You may like: Nuvoco Vistas Corporation IPO – Should you buy or not?

Aptus Value Housing Finance IPO – Review and Recommendation

Aptus Value Housing Finance India Limited is the largest housing finance company in South India. It has presence in large and under penetrated market with strong growth potential.

It has posted strong revenue growth in the last 3 years.

Its has generated strong profit growth in last 3 years. If you observe, its margins are at 40% consistently in the last 2 years. Such high margins can always reward investors.

The IPO share price is fully priced.

Considering various positive factors indicted above, investors can invest in this IPO for short term, medium and long term.

Did you like our IPO Analysis, then share it with your friends on WhatsApp, FB, Twitter and Telegram?

Suresh KP

5 thoughts on “Aptus Value Housing Finance IPO – Issue Details and Review”

  1. 1. I wonder why other pure play HFCs like, PNB Housing Finance, LIC Housing Finance, etc. were not compared and only Aavas Financiers was compared for valuation purposes with Aptus Value Housing Finance.
    2. Retail frenzy is different issue, otherwise a PE of 63 to 73 looks extremely high with a new upcoming financial services / housing finance company in a cut throat competitive housing finance market.
    3. I do not understand how Aptus Value becomes the largest housing finance company in South India with a total AUM of Rs. 4520 crores (assuming 100% deployment of funds in South India only).

    1. Just see what Aptus Value Housing caters to. They go for first time home buyers and in small towns/rural areas. They don’t provide loans to builders or real estate developers. All other HFC’s do that. The metrics are as per CRISIL in respective area and not directly by company. You can go through the RHP.

Leave a Reply

Your email address will not be published. Required fields are marked *