Aadhar Housing Finance, backed by the private equity giant Blackstone, has received approval from the market regulator Sebi for its planned initial public offering (IPO) to raise up to Rs 5,000 crore, according to three sources familiar with the matter who spoke on the condition of anonymity.
“The approval has been granted, and the intention is to launch the IPO within this fiscal year,” stated one of the aforementioned sources.
This sentiment was echoed by two other sources who confirmed the development.
Blackstone was not immediately available for comment.
The affordable housing finance company had resubmitted its draft IPO documents to Sebi on February 2. Moneycontrol was the first to report the company’s intentions to refile its IPO plans on January 30.
The proposed IPO will consist of a fresh issue of shares worth up to Rs 1,000 crore and an offer-for-sale component of as much as Rs 4,000 crore. Blackstone will reduce its stake as part of the share sale.
The proceeds from the fresh issue will be utilized to meet future capital requirements for lending purposes and for general corporate needs.
ICICI Securities, Kotak Mahindra Capital, Nomura, Citi, and SBI Capital are advising Aadhar Housing Finance on its IPO.
Previously, Aadhar Housing Finance had filed for an IPO in January 2021 and had received approval from the regulator in May 2022. However, as the approval expires after a year, the company needed to refile its documents for a fresh attempt.
“We are still in the early stages and hope to expand into infrastructure, growth equity, and private credit in India,” said Jonathan D Gray, Blackstone’s President and Chief Operating Officer, in an exclusive interview with Moneycontrol during his visit to India on April 3.
In addition to Aadhar Housing Finance, another significant IPO is in the works in the housing finance sector, with Bajaj Housing Finance, a subsidiary of Bajaj Finance, gearing up for an IPO aiming for a valuation between $9 billion to $10 billion to comply with RBI norms.
Previously, in December, India Shelter Finance, backed by private equity firm Westbridge, launched a Rs 1,200 crore IPO and made its debut in the public markets.
