As per the subscription data available on exchanges, the IPO (initial public offering) of one of the leading home loan finance companies, Aptus Value Housing Finance India Ltd., has been fully subscribed on the final day of bidding, garnering bids for 5.53 crore equity shares against IPO size of 5.51 crore equity shares.
In addition, qualified institutional buyers’ reserved portion witnessed 2.20 times subscription along with non-institutional investors getting subscribed 0.09 times.
According to Moneycontrol, the 2009-incorporated house financier launched its ₹2,780.05 crore public offer for subscription on August 10, with a price band of ₹346-353 per equity share. It had already mobilized ₹834 crore from anchor investors a day prior to the issue opening.
Reliance Securities, which recommended a subscription to the IPO, stated, “The IPO is valued at 8.8x P/B of FY21, which looks to be reasonable compared to peers like Aavas Financiers, which trades at 8.5x of FY21 P/B. Notably, Aptus has maintained superior return on equity (RoE) and return on assets (RoA) of 13.5 per cent 6.5 per cent, respectively in FY21.”
Moreover, IPO Watch data has shown that investors had traded Aptus shares at ₹35 or 9.9 per cent premium in the grey market compared to the issue price of ₹353 per share.
The company aims to use the proceeds of its IPO, which includes a fresh issue worth up to ₹500 crore and an OFS of 6.46 crore shares, for strengthening its capital base.