href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
Fiscal year 2024. Indian housing market growth at an all-time high. A company related to this market, is coming up with a big IPO of Rs. 3,000 crore. There are no marks for guessing this company. This company deals in low-Income housing
to cover today? Aadhaar Housing Finance India’s business model, strengths and weaknesses, peer Valuation, financials, and of course, all the important details of the
IPO at the end. So, please watch the CashNews.co till the end. If you want to know more about the IPO, some reading resources are in the description, so you can check them as well. Now, let’s start. Aadhaar Housing #1a73e8; text-decoration: none;">Finance operates in the low-Income housing Loans sector. This sector is better understood as it specifically caters to salaried individuals, self-employed persons, and small businesses. It provides housing Loan
solutions up to 15 lakhs. By the end of March 2023, the market size of this industry was 4.3 lakh crores. By the way, between Financial Year 2023 and Financial Year 2026, the CAGR growth is expected to grow by 8-10%. This growth is contextualized. Let’s hear from MD and CEO, Rishi Anka,
through historical analysis. So I would say, since you mentioned COVID, I think post-COVID, the market has been very very dynamic. I think it is an industry-wide phenomenon. When it comes to low-Income housing, post-Covid, I think at least in the segment I operate in, people want
to own their own house to secure their family’s future. Company offers Loans in this range. Home Loan or non-home Loans. In which scenarios can I get a Loan? Loans can be taken for residential property
related home construction or improvement, acquisition and construction of commercial property. And as we can see in this table, between 2021 and 2023, gross Assets of home and non-home Loans under management, Loan disbursements and average ticket
size growth have been observed in the company. The average ticket size of Aadhaar Finance Loans is Rs. 9,00,000 and the average Loan-to-value ratio is 58.1%.
From the Loan-to-value ratio, we see the value of the Loan compared to the asset or property purchased with it, which gives us the degree of risk of the Loan. To calculate the risk ratio, divide the total amount of the Loan by the
property value and multiply by one hundred, gives us the Loan value as a percentage of the property value. Ideally, the ratio shouldn’t be more than 80%, and I guess that makes sense. Even tier 4 or tier 5 cities at which the companies operate. Take a look at this clip. The
segment that we cater, they build their house only once in a lifetime and the emotional quotient that accompanies the property is very high. We definitely have customer dealing points. But they try to prevent themselves that they are not NPA and the surface does not apply to them and their house
does not go out of their hands. For this reason our GNP levels have always been in the range of 1.2 to 1.3% . Whereas the industry runs at 3.5%. The solid distribution Aadhar Finance has
created a solid distribution channel. They have an extensive network of country wide branch and sales offices. As of 30th September they have 471 branches which are present in 533 districts and 20 states of India. Due to evenly spread-out offices they have mitigated geographical concentration risk.
Now their expansion is not wide but focused. Let’s hear from the company’s MD & CEO again. Obviously we don’t have any more states to expand into, but we will definitely be going deeper into states that we know like the back of our hand. Our birth state, for example, Uttar
Pradesh, has 64 branches there. We can go deep into states like Rajasthan, Maharashtra, and Gujarat. These are states of high potential when you go to tier three, tier four kind of locations. This was the business model of Aadhaar color: #1a73e8; text-decoration: none;">Finance. Now let’s see their strengths and weaknesses. This is the company’s expertise in the segment. Company claims that the Indian low-Income housing Loan segment, Aadhaar href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
under management have shown consistent growth from financial year 2021 to 2023. 2. Country wide presence. Aadhar Housing Finance has 471 branches and sales offers across the country. These
extensive networks are spread over 20 states. This gives a massive boost to their sales. They believe that a comprehensive on-ground presence is very important for growth in the low-Income housing #1a73e8; text-decoration: none;">Finance segment. Third, Blackstone backing. Along with strong management, Aadhaar Housing Finance also has a strong promoter, BCP Topco. BCP is
an affiliate business of Blackstone. They hold a 99 percent stake in Aadhar Housing Finance. This arrangement provides the company with Blackstone’s resources, relationships, and
expertise. On the flipside, what if Blackstone exits? Well, the company’s promoter isn’t worried. The concern is that these private Equity guys will keep coming back and selling Shares in the market, capping the stock price gains. So, as you mentioned,
there’s no precedent of one single large shareholder. And since there’s no precedent for the primary, there’s no precedent for the secondary either, so how will they exit? And as far as your concern about them coming back to the market every six months, as I indicated, the fund
life is until 2030. Eventually, by 2030, they will have to exit. That’s how it works. 4. Diversified lending profile. The company uses a diversified lending profile approach to funding, mostly through bank Loans and Loan arrangements. Finally, NHB’s
refinancing and non-convertible debentures. After the company’s ownership change, they are continuously raising funding from diversified sources to reduce their funding costs. Now let’s talk about their weaknesses. First, Negative Cash Flows. Due to past fresh
Loan disbursements the company has had negative Cash Flow, from key operating activities. And the company says that Cash Flow is negative in the company’s future too. Second, Unsustainable Profitability. ICRA is a
Credit rating agency and they believe that the cost of borrowing of the National House of Banking is low. Due to which there are chances of increasing in the financial year. Like there is a possibility of a drop in the company’s margins. Let’s talk about peer
Valuation. So first let us see in which areas, Aadhar Housing Finance is leading compared to its peers. First, PE. Aadhaar Housing’s Valuation is lower
than all these companies. This means that its other peers are trading their earnings at a premium Valuation in the market. Next is Return on Equity, where the company is ahead of everyone else except Aptus. A company’s ROE increases when there is growth in
its net Profit. There is Revenue growth for Aadhar Housing Finance. Along with that they have reduced the cost of borrowing. Due to which there’s
growth in net Profit. If you look the net Profit of these companies, then the Profit number of Aadhaar Finances is the highest. And this is
because Aadhar Finances works on a larger scale than all these other companies. High asset under-management and Loan disbursement rate have further strengthened their pan
India presence. Apart from this, the company has improved its multiple metrics such as net interest margin and payment collection efficiencies, which is allowing them to increase their Profitability. Now let’s come to the areas where the company is performing less than its
peers. Aadhar Housing Finance’s Debt to Equity ratio is the highest. This is because in FY23, their Loan disbursements increased. But
an interesting trend is their ability to service Debt. To service this trend, Aadhar Finance took more Debt, but still their Debt to
Equity ratio has gone down in the last three years. Now after the peer Valuation of Aadhar Housing Finance, we move towards the financials. First of all,
let’s talk about total Revenue and as you can see, the company has improved year on year. This figure increased from 1,175 to 1,728 and then finally in FY2023 it closed at 2,043. Talking about Profit, we are also seeing over the years increment in
Profit. From 340, this figure increased to 444 and then in FY23 it was recorded at 544.7 crores. Now let’s talk about the company’s PE ratio, which is 22.82 and if we compare it to the industry’s PE, it has been recorded at 31.9. Let’s talk about the EPS of
the company. So the EPS as you can see is 13.8. Debt to Equity is 3.3 which is actually a little high. Return on Networth is 14.7. Assets under management in crores is 1,722.8. The average cost of borrowing is 7 percent. In this IPO, you can bid
from Wednesday, i.e., 8th of May to Friday, i.e., 10th of May. The total issue size of the IPO is 3000 crore rupees, with 1000 crore rupees being the fresh issue and the rest 2,000 crores being Offer for sale. So, the majority of the raised money will not go to the company. The company will use the
IPO’s fresh issue proceeds in the following ways. First, the company will use 750 crores for its future Capital requirements. Second, for general corporate purposes. Company will invest in its Strategic initiatives, distribution network expansion, advancement of technology,
repayment of Debt. The company will not spend more than 25 percent of the raised money. According to reports, Aadhar Housing Finance’s grey market premium as of 5th May
is Rs 52. Stock estimated listing 16.51 percent premium. Remember, any company’s GMP only reflects the market’s speculations and trends. Do not consider GMP as the actual share price. Aadhar Housing text-decoration: none;">Finance IPO: Will you apply or avoid? Let us know in the comments. As an informed investor, it is your duty to make a decision only after in-depth research. I have attached the RHP of Aadhaar Housing #1a73e8; text-decoration: none;">Finance in the description and in the pinned comments so that your research is a little bit easier. If you liked this IPO review of Aadhaar Housing none;">Finance, then please like and share this CashNews.co with your friends. If you want to get such in-depth IPO reviews first, then subscribe to Groww and press the bell icon. Before leaving, a small reminder. This CashNews.co is for educational purposes only. It is not a buy or sell
recommendation. I’ll meet you in the next CashNews.co. Until then Happy Investing! Bye bye. The Securities market is subject to market risks. Read all related documents carefully before investing. Please read the risk disclosure documents carefully before investing in
Equity Shares, derivatives, mutual funds, and all other instruments traded on the Stock Exchanges.
CashNews, your go-to portal for financial news and insights.
Black stone jaise big company ke pass 3k crore nahi hey ?? Logon ko murkh banao vahiyat company h y aadhar i worked in aadhar for 8months.
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
Mere pass videos hain ekk video banake YouTube post karna aachha rahega
Future call put buying ke time itna issues even ki order execute hota hain 15 rs option 35 hoke fir 10 rs tak aaake trade karta hain tab app response hota hain … suddenly logout hona expire day par aachha koi trade letehi aapki aap kaam nehi karta hain buffering karta hain buying execute nehi hota . response me plz aab rak apki aap ki karan 35000 hajar ki losses 📉 hua tha … aram se hum 35 par exit ho pate appki karan e lose uthana para mujhe…
बेकार है नहीं लेना कोई
Why you guys keep giving these news clips between the presentation, it only giving distraction if we have to see these news channel clips only then why I am here.
Black Rock
Company koo Blackstone 🧐🧐🧐
Batanea kaa kuch khas wajaa???
The trend lines and resistance or support lines which I am drawing in the Groww android app chart of any stock or index , those are not showing while am using Groww web on my desktop. Even I tried using different browser still it is not working. This is a common feature which works cross-platform in Trading View. Groww is using Trading View chart now then why we are having this issue ? Already raised the issue on 13th May, 2024 with customer support. Still waiting to get this resolved.
Blackstone ya Black Rock
Please application mai chart ko jaldi sahi kijiye 🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏🙏
Avoid
Mujhe iska allotment mil gaya hai .
apke app me pre open market main ipo sell kyu nhi kr sakte
thank you the video was very helpful
Thank you❤ groww Group❤ groww your wealth 🤑
Tbo tek pr video nahi banye misss
Muje aapki Help chahia….me GROWW ka application use karta hu…mera account GROWW me he…mene INDEGENE LIMITED ipo apply kiya tha… yesterday yaniki 10-05-2024 ko muje morning me money refund ka SMS aata he ki aapko IPO allowed nahi huaa he…or aapke money aapke account me Refund kar diye gaye he… money account me refund bhi ho gye…But Noon me muje Email aata he ki aaki aapke demet account me aapke shares allowed kar diye gye he asa…to asa kese ho sakta he…aapka koi big issue he… application ke andar… content me as soon as possible… thank you…🙏🏻
very good
This is first stock broker app that I have seen where my Groww account is not activated since last 6 days but I can apply for an IPO & even got the allotment. But still my account is not activated yet
Told by your customer support team that this is first of a kind case
Please look into it
Though I agree that Groww has one the best interface & UI in the business
Applied for 1 lot. Hope for small listing gain. Let's see
If you are willing to hold these stock for long-term then remember you to sell it before 2030
Avoid
I invested because I know it growssss like grow
Good ipo paisa double short term.
Good 👍
Thanks mam for more information❤
Yes I will
Thanks ❤
how to stop groww app notification in email
please explain how to transfer NSDL shares to Groww demat account.
I always waiting your ipo review
A nice Analysis by Allina…
Thanks.
Avoid