Aavas Financiers IPO – Review, Allotment, Subscription, GMP, Date & more

Aavas Financiers IPO consists of 21,121,437 Equity Shares of face value Rs 10 each aggregating up to Rs 1,734.07 Crores (Issue Size). Aavas Financiers is a retail, affordable housing finance company, primarily serving low and middle income self employed customers in semi-urban and rural areas in India. 

Let’s have a detailed review of the company and analytics of the Aavas Financiers IPO release date, IPO offer price, subscription, Aavas Financiers IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Aavas Financiers IPO Review & Ratings

Aavas Financiers IPO Ratings & Review
Criteria Ratings
Industry Sentiments 7.8/10
Industry Ranking 7.9/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.9/10
Financial Statements 7.8/10
Popularity Index 7.7/10
Promoters Reputation 7.9/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 7.8/10
Star Ratings ★★★★☆

Summary of Aavas Financiers IPO

Aavas Financiers IPOAavas Financiers IPO consists of 16,249,359 Equity Shares of face value Rs 10 each aggregating up to Rs 4,000 million. Aavas Financiers is a retail, affordable housing finance company, primarily serving low and middle income self employed customers in semi-urban and rural areas in India.

As of March 31, 2018:

  • 34.76% of the Gross Loan Assets were from customers who were new to credit.
  • 63.81% of Gross Loan Assets were from self-employed customers.
  • Served over 57,000 customers since the commencement of its operations.
  • Mortgage loans including loans against property accounted for 22.44% of the company’s Gross Loan Assets.
  • 60.40% of the Gross Loan Assets were from customers with earning less than Rs 50,000 per month.

The Promoter of the company is LAKE DISTRICT HOLDINGS LIMITED and PARTNERS GROUP ESCL LIMITED. They are currently holding 35,261,756 Equity Shares, which is equivalent to 49.84% and 17,127,627 Equity Shares equivalent to 24.21% of the pre-Offer issued, subscribed and paid-up Equity Share capital of the Company.


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Aavas Financiers IPO Date

The opening and the closing date of IPO of Aavas Financiers is 25 Sept 2018 – 27 Sept 2018.


Aavas Financiers IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1: 25 Sept 2018 0.12x 0.00x 0.02x 0.04x
Day 2: 26 Sept 2018 0.81x 0.12x 0.07x 0.29x
Day 3: 27 Sept 2018 2.77x 0.26x 0.25x 0.97x
Shares Offered or Net Issue 4,224,293 3,168,220 7,392,514 14,785,027

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Aavas Financiers IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization Oct 3, 2018
Refunds Initiation Oct 4, 2018
Credit of Shares to Demat Account Oct 5, 2018
IPO Shares Listing Date Oct 8, 2018

Aavas Financiers IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is Rs 818 – Rs 821. 


Aavas Financiers IPO Equity Share Offering

Issue size of 21,121,437 Equity Shares of Rs 10/- each and Issue Price is Rs 818 – Rs 821, it will be aggregated to Rs 1,734.07 Crores. The Minimum Order Quantity is 18 shares, listed at both BSE and NSE. The Offer for Sale is 16,249,359 Equity Shares.


Aavas Financiers Limited – Company Overview

According to ICRA Report, their Company had the lowest GNPAs as of March 31, 2018 and the second highest growth rate of assets under management for the last three financial years, among affordable housing finance companies that had assets under management between Rs 25 billion and Rs 200 billion. They offer customers home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.

As of March 31, 2018, a majority of the home loans that they disbursed were for single-unit properties, almost all of which were to be occupied by the borrowers themselves. In addition to home loans, they offer their customers other mortgage loans including loans against property, which accounted for 22.44% of their Gross Loan Assets as of March 31, 2018. As of March 31, 2018, 60.40% of their Gross Loan Assets were from customers who belonged to the economically weaker section and low income group, earning less than Rs 50,000 per month and 34.76% of their Gross Loan Assets were from customers who were new to credit.

As of March 31, 2018, 63.81% of Gross Loan Assets were from self-employed customers. The average sanctioned amount of their home loans and other mortgage loans was Rs 0.88 million and Rs 0.80 million, respectively, on their Gross Loan Assets, as of March 31, 2018. As of March 31, 2018, their Gross Loan Assets had an average loan-to-value of 50.38% at the time of the sanctioning of the loan. Since the commencement of their operations in March 2012, they have served more than 57,000 customers.

They have adopted a strategy of contiguous on-ground expansion across regions and as of March 31, 2018, they conducted their operations through 165 branches spread across 92 districts in eight states of which, they have a significant presence in the four states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. Almost all their customers are sourced directly by them, and as of March 31, 2018, they employed 1,862 personnel and had 52,788 loan accounts including securitized and assigned cases.

They are a technology driven company and they leverage information technology and data analytics for onboarding customers, underwriting analysis, loan monitoring, risk management and collection functions. Between Fiscals 2014 and 2018, they invested Rs 150.45 million in their information technology systems.

Competitive Strengths of Aavas Financiers Limited:

  • Strong Distribution Network with Deep Penetration Serving Undeserved Customers in Rural and Semi-Urban Markets
  • In-house Sourcing Model leading to Superior Business Outcomes
  • Robust and Comprehensive Credit Assessment, Risk Management and Collections Framework
  • Access to Diversified and Cost-Effective Long-Term Financing
  • Effective Use of Technology and Analytics to build a Scalable and Efficient Operating Model
  • Experienced Management Team

Business strategies of Aavas Financiers Limited:

  • Expand our Branch Network to Achieve Deeper Penetration
  • Robust and Comprehensive Credit Assessment, Risk Management and Collections Framework
  • Access to Diversified and Cost-Effective Long-Term Financing
  • Increase our Product Portfolio and Improve Cost Efficiency through Use of Technology and Data Analytics
  • Enhance our Brand Recall to Attract New Customers

Aavas Financiers Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & Millions)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13
Total Assets 3 8,174.52 2 4,506.66 1 7,107.79 8 ,523.83 4 ,179.23 *
Total Revenue 4,572.45 3,054.92 1,908.99 1,037.55 543.22 *
Total Expense 3,154.92 2,179.33 1,409.47 748.00 449.35 *
Profit After Tax 929.33 571.37 327.80 190.81 63.37 *

Earnings per Equity Share (in Millions)

31-Dec-18 31-Mar-17 31-Mar-16
Basic  15.87 11.10 8.24
Diluted  15.21 11.10 8.24

From the above statements, one could find that the Aavas Financiers Limited may perform well.


Aavas Financiers IPO – Promoters

The Promoters of this company are:

  1.  LAKE DISTRICT HOLDINGS LIMITED 
  2. PARTNERS GROUP ESCL LIMITED

List of Related Parties (Key Managerial Personnel)

  • Ghanshyam Rawat
  • Sharad Pathak

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Aavas Financiers IPO Offer Details or Issue Details

 Particulars  No. Of Equity Shares
 Equity Shares Offered 16,249,359 Equity Shares of Rs 10/- each at an Issue Price (yet to be disclosed).
 Of which:
 Reserved for Market Makers * Equity Shares of Rs 10/- each
 Net Issue to the Public * Equity Shares of Rs 10/- each 
 Of which:
 Retail Investors Portion * Equity Shares of Rs 10/- each 
 Non-Retail Investors Portion * Equity Shares of Rs 10/- each 
 Equity Shares outstanding prior to the Issue * Equity Shares of Rs 10/- each
 Equity Shares outstanding after the Issue * Equity Shares of Rs 10/- each

Aavas Financiers IPO Issue Object

These are the IPO Issue Objects of the company

  • Augmenting capital base to meet their future capital requirements
  • Enhance their visibility and brand image among their existing and potential customers

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Aavas Financiers IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Strong distribution network with deep penetration serving undeserved customers in rural and semi-urban
  • markets;
  • In-house sourcing model leading to superior business outcomes;
  • Robust and comprehensive credit assessment, risk management and collections framework;
  • Access to diversified and cost-effective long-term financing;
  • Effective use of technology and analytics to build a scalable and efficient operating model;
  • Experienced management team.

The relevant quantitative factors are:

Basic & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-16 15.87 16.08% *
31-Mar-17 11.10 10.09% *
31-Mar-18 8.24 8.46% 157.03
  • Industry P/E Ratio:
Particulars P/E ratio
Average 25.4
Highest 35.4
Lowest 16.2
  • Competitive Peers Group:

HDFC Limited, Gruh Finance Limited, Repco Home Finance Limited, Can Fin Homes Limited and PNB Housing Finance Limited


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Aavas Financiers IPO Lead Managers

Lead Managers
GLOBAL CO-ORDINATOR AND BOOK RUNNING LEAD MANAGERS:

ICICI Securities Limited

Citigroup Global Markets India Private Limited

Edelweiss Financial Services Limited

Spark Capital Advisors (India) Private Limited

BOOK RUNNING LEAD MANAGER:

HDFC Bank Limited

Aavas Financiers IPO Registrar to offer

Registrar to the Offer
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200, Fax: +91 22 4918 6195
E-mail: , Website: www.linkintime.co.in
Investor Grievance e-mail:
Contact person: Shanti Gopalkrishnan, SEBI Registration No.:INR000004058

Other Details:

  • Statutory Auditor –S. R. Batliboi & Associates LLP, Chartered
    Accountants
  • Peer Review Auditor – *
  • Bankers to the Company –  Allahabad Bank, Andhra Bank and almost all major Banks. 

Aavas Financiers IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.7/10 7.7/10 7.8/10 7.3/10 7.7/10
Sharekhan 7.4/10 7.4/10 7.5/10 7.7/10 7.8/10
Kotak Securities 7.7/10 7.4/10 7.3/10 7.8/10 7.5/10
ICICI Direct 7.8/10 7.7/10 7.5/10 7.5/10 7.7/10
IIFL 7.5/10 7.8/10 7.3/10 7.7/10 7.5/10
Edelweiss 7.3/10 7.5/10 7.7/10 7.3/10 7.3/10
Zerodha 7.7/10 7.3/10 7.7/10 7.5/10 7.7/10
5Paisa 7.9/10 7.5/10 7.8/10 7.3/10 7.3/10
Karvy 7.7/10 7.3/10 7.5/10 7.5/10 7.7/10
Motilal Oswal 7.9/10 7.7/10 7.3/10 7.3/10 7.7/10

 

Aavas Financiers IPO Grey Market Premium

The Aavas Financiers IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 

Grey Market Premium Kostak Rate Rate Date
40-45 Rs (crashed) Nill 24-Sep-18
110-120 Rs 500 Rs 21-Sep-18
150-160 rs 600 Rs 20-Sep-18
145-160 Rs 600 Rs 19-Sep-18
136-142 Rs 600 Rs 18-Sep-18
130-145 Rs 600 Rs (Subject to 2000) 17-Sep-18

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Aavas Financiers IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)


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