Incorporated in 2009, Aptus Value Housing is a retail-focused housing finance company that primarily serves low and middle-income self-employed customers in the rural and semi-urban markets of India. As per the CRISIL report, it is one of the largest housing finance companies in South India in terms of AUM of 37,909.31 million as of December 31, 2020. The company offers home loans to retail customers to purchase
homes, construct residential property, house improvement and extension, loans against property, and business loans. It undertakes all types of lending activities such as sourcing, underwriting, valuation, and legal assessment of collateral, the credit assessment, and collection. As of December 31, 2020, the total home loans accounted for 51.76% of AUM. As of December 31, 2020, 99.42% of the AUM was from customers belong to the low and middle-income group with a monthly income of less than Rs. 50,000.
Issue Details Consolidated Basis
• Issue Opens on 10th August & Closes on 12th August
• Object of the issue : To Part finance for Tier-1 Capital requirment.
• Issue Size : Fresh Issue Rs. 500 Cr, OFS Rs. 2280.05 Cr., Total Issue Size Rs. 2780.05 Cr.
• Offer Price : Rs. 346 to 353 (F. V. Rs. 2)
• Listing on BSE and NSE Platform
• BRLM : Citigroup Global Markets, Edelweiss Financial Services, ICICI Securities, Kotak Mahindra Capital
• Company Management : M. Anadan, Padma Anandan, and Westbridge Crossover Fund, LLC
• Registrar : KFin Tech Pvt. Ltd.
• Pre Issue Promoter Holding : 74.87% • Post Issue Promoter Holding : 72.23%
• Issue constitutes 15.89% of the post issue paid up capital
• Average of last 3 Yrs. EPS Rs. 4.83 & RONW 13.52%
• Pre IPO Equity Capital Rs. 96.28 Cr.
• Post IPO Equity Capital Rs. : 99.12 Cr
• Pre IPO P/BV Ratio : 8.58 (NAV : 41.12) • Post Issue : P/BV Ratio : 6.84
• Pre IPO P/E Ratio : 63.60 • Post IPO asking PE on fully diluted equity : 64.60
• Industry Peer group PE Ratio : 67.99
Recommendation : Company’s financial track record is good but unlikely to sustain due to tough
competition & soften of interest rates. On valuation front considering P/BV of 6.84 & PE of 64.60, issue is fully priced compared to listed peers. Investors may apply for long term prospective.
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The author, CA Jayprakash Pandey is a practicing Chartered Accountant (Founder of Jayprakash P & Company) having Office at Mumbai, with more than 5 years of professional cum practical experience, Direct Tax, International Taxation, Indirect Tax & FEMA related advisory, litigation & compliance matters.
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