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Aavas Financiers Ltd. plans to issue initial public offering (IPO) in order to raise up to Rs 1,734 crores through its three-day run that opens today i.e. 25/09/2018. Aavas was earlier known as AU Housing Finance, the mortgage lending business of Jaipur-based small finance bank AU Small Finance Bank Ltd. Partners Group and Kedaara Capital acquired Aavas for Rs. 900 -1,000 crores in February 2016.
The housing finance company will issue new shares worth Rs. 400 crores and its promoters and investors will sell 1.62 crores shares at Rs 818 to 821 apiece. At the upper price band, the company’s valuation would be at Rs. 6,450 crores.
The investors will sell part of their stake in order to enable the mortgage-lender too raise funds to augment its capital. Promoters Lake District Holdings Ltd., Partners Group Private Equity Master Fund LLC and Partners Group ESCL will sell 24.2 percent of their shareholding from the existing 81.26 percent. The rest of the shares will be offloaded by Kedaara Capital, Sushil Agarwal and Vivek Vig, non-executive nominee director of the company.
The firm had previously raised Rs. 520 crores from anchor investors that includes Abu Dhabi Investment Authority, AU Small Finance Bank, SBI Life, Bajaj Life Insurance, DSp Blackrock Tax Saver Fund and Morgan Stanley India Investment.
Edelweiss Financial Services Ltd., ICICI Securities Ltd., Spark Capital Advisors (India) Pvt Ltd. and Citigroup Global Markets India Private Ltd., are the book running lead managers for the issue.
