Global investment firm Blackstone is planning to take its portfolio firm Aadhar Housing Finance public by June and for that it has investment banks to work on a Rs 5,000 crore share sale, said three people known of the development.
The private equity (PE) giant has hired three investment banks including Citigroup and ICICI Securities to work on the initial public offering (IPO), said one of the three people asked to be unknown. “They will take it public in 2021, most likely in the first quarter of the next fiscal,” he said.
In April 2019, Blackstone Group has acquired Aadhar Housing from Dewan Housing Finance Corporation Ltd. (DHFL) for nearly Rs 3,000 crore. Since then, the group has invested Rs 1,300 crore in the housing financier.
The IPO will largely comprise an offer for sale (OFS) of shares by Blackstone and issuance of small portion of new shares to further meet the working capital requirements, said the second person cited above. “They are looking at total fundraising of around $670 million (approx Rs 5,000 crore). Blackstone will sell a large chunk of its shares through the offer for sale,” he added.
The housing financier focuses on lower and middle-income segments and has 294 branches across 20 states and Union territories. According to a report by ICRA Ltd, it had a portfolio of Rs 11,432 crore as of 31 March, 2020.