The HFC has 190 branches across 75 districts in four different states, with a presence in Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka. It does not offer any loans to builders or for commercial real estate. On the block is a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to 6,45,90,695 equity shares.Īptus targets first-time home buyers in low and middle-income groups and self-employed customers. The IPO is being sold in Rs 346-353 price band. The HFC on Monday raised Rs 834 crore from 21 anchor investors, allocating 2,36,26,500 shares at Rs 353 per share. While the fundamentals of the company are strong, the pricing of IPO is a tad expensive at 7 times FY21 P/BV (post issue)," it said while suggesting a neutral on on the issue. "Its continued focus on the niche play i.e targeting salaried and self-employed customers sets it up for growth, its ability of better service delivery, funding availability with competitive cost of funds and high capital level. Besides, as few analysts noted that Aptus operates at a leverage of 2 times as opposed to a sector average of 6-8 times, and this over capitalisation may lead to a low teen return on equity (ROE) despite strong profitability.Īptus has one of the highest return ratios amongst peers with RoA of 6.5 per cent and RoE of 14.5 per cent as on FY21, it said. Past experiences of Repco and Can Fin Home suggest that slowdown in home states impacts growth as well as profitability for regional HFCs.Īlso, there is a limited track record of Aptus' assets as housing finance loans behavioral maturity is 7-8 years, whereas 65 per cent of the company's book is built over the past three years. Aptus boasts of experienced management with marquee shareholders and an established track record of financial performance, with industry-leading profitability.īut there are a few concerns as well, including high dependence on Tamil Nadu market, which accounts for 52 per cent of Aptus Value's loan portfolio. NEW DELHI: Aptus Value Housing Finance IPO has mostly 'subscribe' recommendations, even as analysts believe the asking valuation leaves little for investors on the table.Īnalysts said the HFC is present in underpenetrated markets and has robust risk management architecture, leading to superior asset quality.
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