Aavas Financiers IPO
Company Promoters :
The promoters of the company are Lake District and ESCL. They currently hold 35,261,756 Equity Shares, equivalent to 49.84% and 17,127,627 Equity Shares equivalent to 24.21% of the pre-offer issued, subscribed and paid up Equity capital of the company.
Business Description :
Aavas Financiers serves low and middle income self employed customers in semi-urban and rural areas in India with affordable housing finance options. The company offers customers home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units. As of 31 March 2018, a majority of the home loans that it disbursed were for single-unit properties, almost all of which were to be occupied by the borrowers themselves. In addition to home loans, it offers customers other mortgage loans including loans against property, which accounted for 22.44% of its Gross Loan Assets as of 31 March 2018.
As of 31 March 2018, 60.40% of its Gross Loan Assets were from customers who belonged to the economically weaker section and low income group, earning less than ₹ 50,000 per month and 34.76% of its Gross Loan Assets were from customers who were new to credit. The average sanctioned amount of its home loans and other mortgage loans was ₹ 0.88 million and ₹ 0.80 million, respectively.
Aavas Financiers has adopted a strategy of contiguous on-ground expansion across regions and conducted operations through 165 branches spread across 92 districts in eight states as of 31 March 2018, with significant presence in the four states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. As of 31 March 2018, it employed 1,862 personnel and had 52,788 loan accounts including securitized and assigned cases.
Objects of the Issue:
The offer comprises a fresh issue by the company and an offer for sale by the shareholders.
the proceeds of the offer for sale will go to selling shareholders after deducting their portion of the offer related expenses and relevant taxes thereon. The company will not receive anything from the proceeds of the offer for sale.
The net proceeds of the Fresh Issue will be utilized towards augmenting the company’s capital base to meet the future capital requirements arising out of growth in the business.
Aavas Financiers’ standalone financial performance (in INR crore)
Aavas Financiers IPO details
- Issue Type: Book Built Issue IPO
- Face Value: Rs 10 Per Equity Share
Valuation of Aavas Financiers (FY2018)
- Earnings Per Share (EPS): INR15.21
- Price/Earnings (P/E) ratio: 53.78 – 53.98
- Return on Net Worth (RONW): 8.46%
- Net Asset Value (NAV): INR157.03 per share
Listing Performance of Aavas Financiers
*To be updated