Aadhar Housing Finance Ltd Share Price

History of Aadhar Housing Finance Ltd

Aadhar Housing Finance Limited was originally incorporated as Vysya Bank Housing Finance Limited' at Bengaluru, Karnataka as a Public Company, pursuant to a Certificate of Incorporation dated November 26, 1990, issued by the Registrar of Companies, Karnataka at Bangalore and commenced operations pursuant to a Certificate for Commencement of Business dated November 27, 1990, issued by the RoC. Subsequently, the name of Company was changed to DHFL Vysya Housing Finance Limited' and a fresh Certificate of Incorporation dated October 15, 2003, was issued by the RoC. Separately, an entity named Aadhar Housing Finance Private Limited' (Pre-merger AHFPL) was incorporated as a Private Limited Company, at Mumbai, Maharashtra dated May 3, 2010, issued by the Registrar of Companies, Maharashtra at Mu ...mbai, which commenced its operations in February 2011. Pre-merger AHFPL later converted into a Public Company and its name was changed to Aadhar Housing Finance Limited', and a fresh Certificate of Incorporation dated September 3, 2013 was issued by the Registrar of Companies, Maharashtra at Mumbai. Pre-merger AHFPL was later merged into the Company pursuant to a Scheme of Amalgamation approved by the National Company Law Tribunal, Bengaluru Bench at Bengaluru, dated October 27, 2017. Pursuant to Scheme of Amalgamation, the Company name was changed to Aadhar Housing Finance Limited' and a fresh Certificate of Incorporation dated December 4, 2017, was issued by the RoC. Aadhar Housing Finance Limited is one of the largest low-income housing finance companies in India servicing the home financing needs of economically weaker and low-to-middle income customers, who require small ticket mortgage loans. Aadhar endeavors to empower underserved millions to own their first homes. Aadhar, , with an AUM at Rs 211 billion, is a retail focused HFC catering to the needs of the salaried, self-employed and informal business segments. The Company offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; loans for commercial property construction and acquisition and loans against residential properties (LAP) which are micro lap with the ticket size ranging from 7-8 lakhs. The Company boasts of an extensive network of 534 branches and offices including 140 sales offices across 20 states and union territories, as of 31st March 2024. In June 2019, BCP Topco VII Pte. Limited (which is controlled by a private equity fund managed by the Blackstone Group) completed the acquisition of the stake from existing shareholders and now holds 76.48% in the company. The Company raised approximately Rs 7 billion through maiden public offering of NCDs. AHFL is well-capitalised, with a total CRAR of 44.08% as of 31 March 2021, which is above the RBI's minimum stipulated requirement of 15%. The equity raise of Rs. 1300 Crore in FY20 by the promoter, Blackstone Group, through its private equity funds, strengthened the company's capital position to cover for any asset-side risk and to augment growth. The company's asset quality is also comfortable, with the gross NPA and net NPA ratio at 1.21% and 0.81%, respectively, as on 31 March 2021 as against 1.29% and 0.78%, respectively, as on 31 March 2020. AHFL has a comfortable resource profile, with the funding mix comprising Term Loans (62%), NCDs (21%), NHB refinance (16%) and subordinated debt (1%). Over the years, the company has diversified its funding mix, with the proportion of NCDs and NHB refinance increasing from 27% at the end of FY20 to 37% as at the end of FY21. Given its parentage and track record of performance, the company is well-placed in terms of raising funds for its growth. During FY21, the company has raised Rs 1695 Crore of bank loans, Rs 1091 Crore from NHB, Rs.815 Crore of NCDs and commercial paper of Rs 50 Crore. The company has been able to take advantage of the prevailing interest rates and has been able to reduce its incremental cost of borrowings to 6.76% in FY21 from 8.89% in FY20. AHFL is a retail-focused mortgage financier, with 80% of total AUM comprising home loans, as on 31 March 2021. The company had approximately 1.80 lakh live accounts as on 31 March 2021 with an average ticket size of Rs 8.50 lakh. Around 20% of the total AUM comprises retail loans against property (LAP) with an average ticket size of Rs. 7.17 lakhs. In May, 2024, the Company came up with an Initial Public Offer of 95,255,598 Equity Shares by raising equity capital aggregating Rs 3000 Crore, consisting a Fresh Issue of 31,763,535 Equity Shares aggregating to Rs 1000 Crore and an Offer for Sale of 63,492,063 Equity Shares aggregating to Rs 2000 Crore. Post IPO, the holding of Blackstone Group in the Company is 76.48%.