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Aptus Value Housing Finance IPO: Dates, Details and Overview 3 min read

August 10, 2021 3 min read

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Aptus Value Housing Finance IPO: Dates, Details and Overview 3 min read

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Aptus Value Housing Finance is coming up with its Rs.2,780 Initial Public Offering this week. The offer consists of fresh issue of Rs 500 crore, and an offer for sale of 6,45,90,695 equity shares. The IPO will begin on 10th August, Tuesday and end on 12th August, Thursday.

The price of each equity share is fixed between Rs. 346 – 353 and the face value of each share is Rs. 2.

Know the company

Aptus Value Housing Finance is an entirely retail focussed housing finance company, primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India. It is one of the largest housing finance companies in south India in terms of assets under management (AUM), as of March 2021.

As of March 2021, it had a network of 190 branches covering 75 districts in Tamil Nadu, Andhra Pradesh, Karnataka and Telangana states, and the union territory of Puducherry. It had the largest branch network in south India among the peer set.

We do not provide any loans with a ticket size above Rs.25 lakh and the average ticket size of our home loans, loans against property and business loans on the basis of disbursement amounts was Rs.0.72 million, Rs.0.71 million and Rs.0.62 million, as of March 31, 2021, respectively. As of the same date, our home loans, loans against property and business loans had an average loan-to-value of 38.89%, 38.27% and 39.21%, respectively, at the time of sanctioning of the loans.

Here’s the IPO timeline

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Objective of the issue

Net proceeds from the offer will be utilised towards augmenting the company’s tier 1 capital requirements.

Important financial data

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Source : RHP. Revenue growth for FY 19 not known as FY 18 numbers unavailable

Strengths of the Company

  1. The company has proven its presence in the large, underpenetrated markets with strong growth potential
  2. It has a robust risk management architecture from origination to collections leading to superior asset quality
  3. The company has an In-house operations leading to desired business outcomes
  4. Their expertise resulting in a business model difficult to replicate by others in our geographies.
  5. They have an experienced and stable management team with marquee shareholders. 
  6. The company has an established track record of financial performance with industry leading profitability.

Risks involved

  1. The company requires substantial capital for business and any disruption in their sources of capital could impact business adversely. 
  2. The liquidity may be affected by the COVID-19 pandemic which may affect its ability to continue to operate and grow business. 
  3. The risk of default by borrowers may adversely affect its business. 
  4. A substantial portion of its customers are first time borrowers which increases risks of non-payment or default
  5. The COVID-19 pandemic, or a similar public health threat, could impact its business. 
  6. It has experienced significant growth in recent years and may not be able to sustain such growth in the future.

Sources – RHP, BLRM

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