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APTUS HOUSING FINANCE IPO

  • Writer: The Shareholder
    The Shareholder
  • Aug 9, 2021
  • 2 min read

Updated: Aug 28, 2021




IPO Details:

Price Band: 346-353

Cutoff Price: 353


About Company:


Aptus Housing is an entirely retail focussed housing finance company primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India. Company had the highest RoA of 5.7% among the Peer Set during the financial year 2021. They are one of the largest housing finance companies in south India in terms of AUM, as of March 31, 2021.


Competitive Strengths:

  1. Presence in large, under penetrated markets with strong growth potential.

  2. Robust risk management architecture from origination to collections leading to superior asset quality.

  3. In-house operations leading to desired business outcomes.

  4. Domain expertise built over time, resulting in a business model difficult to replicate by others in our geographies.

  5. Experienced and stable management team with marquee shareholders.

  6. Established track record of financial performance with industry leading profitability and

  7. Focus on the social impact of our business.

Strategies:

  1. Continue to focus on low and middle income self-employed customers in rural and semi-urban markets.

  2. Increase penetration in existing markets and expand the branch network in large housing markets.

  3. Continue to be an asset quality focused financier.

  4. Reduce cost of borrowings by diversifying sources of borrowing and improving credit rating.

Financial Performance:




Company's Revenue is increasing, and also Net Profit and EPS are increasing year on year. This is the good sign for the company. With EPS of 5.5, the company's P/E is 64.1.


Objects of the Issue:


The Net Proceeds from the Issue are proposed to be utilised in the following manner:

  1. Offer for Sale

Competitors Comparison:

Aptus Housing IPO seems to be overvalued based on the P/E ratio and Price to book value.


Grey Market Premium:


Our view: GMP of the IPO is not updated yet. I will wait for this data and then take a call on whether to apply or not.


Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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