About Company’s Business:
The company is a retail-focused affordable housing finance entity that boasts an extensive distribution network, consisting of 203 branches as of September 30, 2023, along with a scalable technology infrastructure across its business operations and the entire loan life cycle. According to a CRISIL Report, the company experienced a two-year compounded annual growth rate (“CAGR”) of 40.8% in assets under management (“AUM”) between Financial Year 2021 and Financial Year 2023. The target demographic comprises self-employed individuals, with a specific emphasis on first-time home loan applicants within the low and middle-income groups residing in Tier II and Tier III cities in India. This strategic focus enables the company to generate relatively high yields on advances.
About the Industry:
In India, the housing finance sector encompasses public sector banks, private sector banks, housing finance companies, non-banking financial companies, and other entities. As of March 2023, the affordable housing finance market’s total size, measured by outstanding loans, stood at approximately ₹11.5 trillion, representing about 37% of the overall housing finance market. According to a CRISIL Report, the Indian housing finance market demonstrated a Compound Annual Growth Rate (CAGR) of around 13.5% in terms of loan outstanding during the financial years 2019-2023. This growth can be attributed to increased disposable income, robust demand, and an influx of new participants in the segment.
Key Financial Information (â‚ą in million):
| Particulars | As of Sep 30, 2023 | As of Sep 30, 2022 | As of Mar 31, 2023 | As of Mar 31, 2022 | As of Mar 31, 2021 |
|---|---|---|---|---|---|
| Equity Share Capital (â‚ą) | 450.23 | 437.32 | 437.65 | 437.07 | 429.78 |
| Net Worth (â‚ą) | 13,749.66 | 11,420.09 | 12,405.28 | 10,761.27 | 9,372.69 |
| Total Income (â‚ą) | 3,985.76 | 2,728.86 | 6,062.31 | 4,598.06 | 3,227.99 |
| Profit for the Period/Year (â‚ą million) | 1,073.54 | 620.21 | 1,553.42 | 1,284.47 | 873.89 |
| Basic Earnings per Share (EPS) (â‚ą) | 12.13 | 7.09 | 17.75 | 14.80 | 10.19 |
| Diluted Earnings per Share (EPS) (â‚ą) | 12.00 | 7.02 | 17.47 | 14.63 | 9.93 |
| Net Asset Value per Equity Share (â‚ą) | 152.70 | 130.57 | 141.38 | 123.11 | 109.04 |
| Total Outstanding Borrowings (â‚ą) | 32,724.77 | 25,256.36 | 29,734.28 | 20,593.95 | 14,807.18 |
Note: All figures are in â‚ą million unless otherwise specified.
Objective of the Issue:
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To meet future capital requirements towards onward lending.
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General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Wednesday, December 13, 2023 |
| Close Date | Friday, December 15, 2023 |
| Issue Size | â‚ą1,200.00 Crores |
| Price | â‚ą469 to â‚ą493 per share |
| Lot Size | 30 Shares |
| Basis of Allotment | Monday, December 18, 2023 |
| Initiation of Refunds | Tuesday, December 19, 2023 |
| Credit of Shares to Demat | Tuesday, December 19, 2023 |
| Listing Date | Wednesday, December 20, 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
Do let us know your thoughts on this IPO.