AAVAS Financiers lists at discount

Shares of AAVAS Financiers were trading at Rs 728.75 at 10:31 IST on BSE, a discount of 11.24% over the initial public offer price of Rs 821.

The stock debuted at Rs 758, a discount of 7.67% to the initial public offer (IPO) price. So far the stock hit a high of Rs 758 and low of Rs 710. On BSE, so far 1.63 lakh shares were traded on the counter.

The IPO of AAVAS Financiers received bids for 1.44 crore shares, as against 1.47 crore shares on offer, as per the Bombay Stock Exchange (BSE) website data. The issue was subscribed 0.97 times. The issue opened for subscription on 25 September 2018 and closed on 27 September 2018. The price band for the issue was fixed at Rs 818 to Rs 821 per share.

The qualified institutional buyers (QIBs) category was subscribed 2.77 times. The non institutional investors category was subscribed 0.26 times. The retail individual investors (RIIs) category was subscribed 0.25 times.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 24 September 2018, finalised allocation of 63,36,439 equity shares to anchor investors at Rs 821 per share.

AAVAS Financiers was incorporated in Jaipur, Rajasthan, on 23 February 2011. The retail and affordable housing finance company primarily serves low- and middle-income self-employed customers in semi-urban and rural areas with limited access to formal banking credit. Gross non-performing assets (NPAs) were the lowest end March 2018 and assets under management (AUMs) were second-fastest growing in the last three financial years among affordable housing finance companies with AUMs between Rs 2500 crore and Rs 20000 crore.

The issue consisted of a fresh issue of equity shares (0.487 - 0.489 crore shares) aggregating up to Rs 400 crore and offer for sale (OFS) of 1.62 crore equity shares aggregating up to Rs 1329.20 - 1334.10 crore.

The net proceeds of the fresh issue are proposed to be utilized for increasing the Tier I capital base to meet future capital requirement that are expected to arise out of growth of business and assets, primarily housing loans and other mortgage loans, and to ensure compliance with the National Housing Board guidelines. Further, there will be the benefits of listing of the equity shares on the stock exchanges, enhancement of the brand name and creation of a public market for equity shares in India. The net proceeds will be sufficient to satisfy the Tier- I capital requirements for FY2019.

AAVAS Financiers reported profit after tax of Rs 92.93 crore on total income of Rs 457.25 crore in the year ended March 2018.

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