Kedaara and Partners Group-backed housing finance company Aavas Financiers Ltd, formerly known as AU Housing Finance, has filed its draft prospectus with Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
As per the Draft Red Herring Prospectus filed on June 20, the offer will consist of fresh issue of undisclosed number of shares aggregating up to Rs 400 crore ($59 million), along with little over 16 million shares from current shareholders.
The IPO will also provide partial exits to private equity firms Kedaara Capital and Partners Group.
Currently, the company’s major shareholders include Lake District with 49.84 per cent stake, ESCL with 24.21 per cent, and 10.62 per cent held by Master Fund. Kedaara Capital holds 69.11 per cent of the equity shares of Lake District.
Aavas was initially promoted by Au Financiers (India) Ltd, now known as AU Small Finance Bank Limited, which sold 90.10 per cent of the equity to Lake District, Kedaara Capital AIF 1, Partners Group ESCL Limited, and Partners Group Private Equity Master Fund LLC in June, 2016. The company’s name was changed from AU Housing Finance to Aavas Financiers in March 2017.
As part of the offer, Lake District will offer about 8.8 million shares in Aavas, while ESCL will sell 4.28 million shares.
While a portion the proceeds from the offer will be remitted to the exiting shareholders, net proceeds of the fresh issue will be also be used towards augmenting the company’s capital base to meet future capital requirements, which are expected to arise out of growth of business and assets, primarily housing loans and other mortgage loans, and to ensure compliance with the NHB Directions, the draft said.
The net proceeds are expected to be deployed in FY’19, it added.
Aavas provides affordable housing loans, primarily in the underserved markets of Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh and Delhi. In 2016-17, it disbursed loans worth Rs1,391.6 crore, a growth of 32.5% over the previous year.
The company’s revenue for the year ended March 31, 2018 stood at Rs 4,57.2 crore, while net profit for the year was about Rs 93 crore.
Also Read:
