NEW DELHI: The Rs 1,734 crore initial public offering (IPO) by Jaipur-based Aavas Financiers received 49 per cent bids till 12.30 pm of the last day of the bidding process.
The IPO housing finance company (HFC) received bids for 72,04,932 shares on Thursday against the issue of 1,47,85,027 shares. The price band for the public issue has been fixed at Rs 818-821 a share and the issue will conclude later in the day (if it is not extended).
Aavas Financiers earlier this week finalised 34 anchor investors, allotting 6,336,439 equity shares at Rs 821 per equity share aggregating to Rs 520.22 crore. The list included Abu Dhabi Investment Authority, Kuwait Investment Authority, Nomura, HSBC Halbis, Morgan Stanley, Amundi, Wesatch, BNP, Steinberg, Kotak and Buena Vista.
The company intends to utilise Rs 400 crore fresh issue to infuse capital in the lending business. Besides, some of the existing stakeholders will sell shares worth up to Rs 1,334 crore in the primary market.
Many brokerages have a long-term buy rating on the issue, as they believe asking valuations and the short-term concerns over NBFC space may leave little upside for the short-term traders.
“Valuations at 4.1 times on post-money book and 43 times on FY19e earnings do not leave much upside in the near term. Investors with long term outlook can look to subscribe,” said Antique Stock Broking, which says good things come at a price.
With an estimated Rs 400 crore capital infusion through a fresh issue of share capital, valuation at upper price band appears high, said Anand Rathi Financial Services.
Yet, most financial inclusion plays such as Bandhan Bank, Bharat Financial and Gruh Finance generally command richer valuations than mainstream peers, the brokerage noted.
[contf]
[contfnew]
ET Markets
[contfnewc]
[contfnewc]
