Aptus Value Housing Finance has filed a draft red herring prospectus with the SEBI to raise around Rs 2,600-3,000 crore.
The fund raise comprises of a fresh issue of equity shares aggregating to 500 cr and an offer for sale of up to 64,590,695 equity shares by the promoter and other shareholders.
As of December 31, 2020, the company's assets under management (AUM) stood at Rs 3,790.93 crore, of which 72.50 per cent were loans to self-employed customers while the balance 27.50 per cent accounted for salaried individuals.
On the same date, the company had 1,844 personnel, a network of 181 branches catering to 56,430 active loan accounts across Tamil Nadu, Puducherry, Andhra Pradesh, Karnataka, and Telangana and a strong capital sponsorship by marquee investors including Westbridge, Malabar Investments, Sequoia Capital, Steadview Capital and Madison India.
AVHFIL, whose 60 per cent customers are located in rural and semi urban regions, offers home loans for purchase and self-construction of residential property, home improvement, extension loans, loan against property, and business loans, primarily to first time home buyers belonging to the low and middle income groups.
The ticket sizes of its loans ranges between Rs 5-15 lakh with tenures ranging between 8.5 to 12.5 years.
After growing its presence outside its home state, Tamil Nadu, to other major markets in southern India, it is now intending to expand its branch network in large housing markets in the states of Maharashtra, Odisha and Chhattisgarh.
As of December 31, 2020 its net NPA stood at 0.57 per cent, capital adequacy at 75.03 per cent and collection efficiency at 99.20 per cent.
The net proceeds from the issue will be utilised towards augmenting the company's capital base and to meet future growth requirements.
Investment bankers appointed for the Issue are ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd, Edelweiss Financial Services Ltd and Kotak Mahindra Capital Company Ltd.