Chennai-based housing finance company Aptus Value Housing Finance (AVHFIL) which has a significant footprint in south India, has filed papers with market regulator Sebi to raise Rs 2,600 crore to Rs 3,000 crore through an initial public offering (IPO).
The fund raise comprises of a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale of up to 64,590,695 equity shares by the promoter and other selling shareholders, according to a company release. The net proceeds from the issue will be utilised towards augmenting the company’s capital base and to meet future growth requirements.
Since the inception of the company in 2010, it has had a clean asset quality with very low NPA. As of December 31, 2020, the company’s AUM stood at Rs 3,790.93 crore, of which 72.50% were loans to self-employed customers while the balance 27.50% accounted for salaried individuals.
The company has a workforce of 1,844 and a network of 181 branches catering to 56,430 active loan accounts across 75 districts in Tamil Nadu (including the Union Territory of Puducherry), Andhra Pradesh, Karnataka and Telangana. It has a strong capital sponsorship by marquee investors such as Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India, it said.
With 60% of its customers located in rural/ semi-urban regions, AVHFIL offers home loans for purchase and self-construction of residential property, home improvement, extension loans, loan against property and business loans, primarily to first-time home buyers belonging to the low- and middle-income groups The ticket sizes of its loans ranges between Rs 5 lakh and Rs 15 lakh with tenures ranging between 8.5 and 12.5 years.
After successfully growing its presence outside its home state Tamil Nadu to other major markets in southern India, it now intends to expand its branch network in large housing markets in Maharashtra, Odisha and Chhattisgarh.
The release said the company has stayed resilient and has seen consistent performance through past and ongoing macroeconomic challenges. As of December 31, 2020, its net NPA stood at 0.57%, capital adequacy at 75.03% and collection efficiency at 99.20%.
Investment bankers appointed for the Issue are ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services and Kotak Mahindra Capital Company.