• By Elite Wealth
  • / August 11, 2021
  • / whatsnew
IPO-Note APTUS VALUE HOUSING FINANCE INDIA LIMITED
Rs.346-Rs.353per Equity share Recommendation: Subscribe

Company Profile: –

Aptus value housing finance(AVHF) India Limited is a housing finance company with entire focus on retail customer base serving to low and middle income customers in the Semi-Urban and rural markets in India. Company offers home loans for home improvement and Extension, purchase and construction of residential property, business loans and Loan against property. Company is one of the largest housing finance company in South India in terms of AUM as of March 31st,2021. Company has a network of 190 branches covering 75 districts in the states of Tamilnadu, Andhra Pradesh, Karnataka and Telangana.It had 108 branches that were operational for over three years with AUM of Rs.3,229.89 crore while 82branches were operational for less than three years with AUM of Rs.8,37.87 Crore.

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APTUS VALUE HOUSING FINANCE INDIA LIMITED

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Issue Details
Objects of the issue
  • To augment company’s capital base to meet future capital requirements.
  • To achieve the benefit of share listing on the stock exchanges
Issue Size Issue Size – Rs.2780.05 Crore

Fresh Issue- Rs. 500 Crore

Offer for Sale-Rs.2280.05 Crore

Face value  

Rs.2 Per Equity Share

Issue Price Rs. 346– Rs. 353
Bid Lot 42 shares
Listing at  

BSE, NSE

Issue Opens: 10thAugust 2021 – 12thAugust2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

Financial Performance:

Financial-Performance

Check Aptus Value Housing Finance India Limited IPO Allotment Status

Aptus Value Housing Finance India Limited IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To Aptus Value Housing Finance India Limited IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as Aptus Value Housing Finance India Limited
  4. Enter your PAN Number or Application Id or DP Client Id.

 

Aptus Value Housing Finance India Limited IPO

Application Form

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Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoter 74.87% 72.23%
Public 25.13% 27.77%

Source: RHP,, EWL Research

Strengths and Strategies:

  • Strong Financial Performance.
  • Robust Risk Management in terms of asset quality and collections.
  • Focusing on Expansion in the states of Maharashtra, Odisha and Chhattisgarh.
  • Continuous Focus on Improving Asset Quality.

Key Highlights (FY21):

  • Asset under Management stood at Rs.4,067.76 crore witnessed growth rate of 28% Y-o-Y.
  • Net Interest Income Stood at Rs.417.35 Crore Improve by 39% Y-o-Y
  • Gross NPAs stood at Rs. 27.62 crore improved to 0.68% vs 0.70% in FY20.
  • Net NPAs stood at 0.49% vs 0.54% in FY20.
  • Net Interest Margin Stood at 10.10% expanded by 20 basis points Y-o-Y.
  • Capital Adequacy Ratio was 73.63% vs 82.49% in FY20.
  • Operating expenses to Net Income was 21.80% vs 26.08% in FY20.
  • Average Yield on Gross Loan Book was at 17.24% decline by 71 Bps Y-o-Y.
  • Collection Efficiency stood at 93.94% in Q1FY22 vs 99.76% in Q4FY21.
  • Net Profit stood at Rs.267 crore increase by 26.5% Y-o-Y and registered the CAGR growth of 54.7% From FY19-21

Risk Factors:

  • The Third- Wave of Covid-19 could result in Collection inefficiencies and increase of NPAs.
  • Highly competitive Industry as access to cheaper Capital always serve as a catalyst to the consumer that could impede loan growth

Outlook:

AVHF India Limited is a housing finance company offer loans only to retail customers and do not provide any loans for commercial real estate and builders. Loan book of the company comprises of Self Employed and salaried person which accounted 72.05% and 27.95% of the AUM. Company doesn’t written-off and restructured any loans  from FY19-FY21 and also implemented digitized collection models, which has led to an increase in collection efficiencies. The Indian housing finance market clocked a healthy CAGR of approximately 12% (growth in loan outstanding)over Fiscals 2018 to 2021 and estimated to grow at a CAGR of 11%-12% from FY21-FY25. The southern states of Karnataka, Telangana, Tamil Nadu and Andhra Pradesh which contribute to 4.3%, 8.1%, 4.5%, 8.9% and 4.6% to India’s GDP, respectively. AVHF has registered the third-highest growth in AUM in Fiscal 2021, next to Shriram Housing Finance (70%) and Vastu Housing Finance (36%) and registered the highest CAGR in disbursements (33% CAGR over Fiscals 2017-2021) followed by Home First Finance Company (27% CAGR). AVHF has lowest penetration across various states among it’s peers which implies various headroom to grow for the company.  At the higher end of the price band of Rs. 353, the stock is offered at a PB multiple of 7x on FY21 Post issue NAV of Rs.50.03 which is lower as compared to AAVAS Financiers P/B of 8.07x. Thus, We would recommend Subscribe to this IPO.

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