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Aadhar Housing Finance Ltd NCD Review

Aadhar Housing Finance Ltd NCD Review pic

The housing finance company was started its journey from the year 1990. Aadhar Housing Finance Limited was formerly known as DHFL Vysya Housing Finance Limited. India’s one of the largest, as well as affordable housing finance companies Aadhar Housing Finance, serve the lower-income section. The company fulfills various financial needs related to the home. The mission of Aadhar is to serve millions of underserved customers to build their own home. They provide different financial service including housing loans. The company has decided to issue NCD (Non-Convertible Debentures). The article is on the Aadhar Housing Finance Ltd NCD Review and analysis.

About Aadhar Housing Finance Ltd NCD Issue Details

  • The issue opens on- Sep 14, 2018
  • The issue close on- Sep 28, 2018
  • Issue Type: Fixed Price Issue NCD
  • Face value: Rs. 1000 Per NCD
  • Issue size: 30,000,000 NCD’s of Rs. 1000
  • Issue size: Rs. 3,000.00 Crore
  • Issue price: Rs. Per NCD
  • Market lot: 1 NCD
  • Listing At: BSE
  • Minimum order quantity: 1 NCD
  • DRHP: Click here

Purpose of Issuing NCD

  • Payment purpose, lending, financing etc are the primary objectives behind issuing NCD.
  • The general corporate purpose will also be fulfilled after issuing the NCD.
  • Brand name, the corporate image can enhance by issuing NCD.
  • If a company wants to raise its fund, apart from share capital there is another option, issue NCD.
  • In comparison to a convertible debenture, Non-convertible debenture carries higher interest rate.

About Aadhar Housing Finance Ltd

  • Aadhar Housing Finance Ltd spread its web all over India across 19 states and 270 different branches.
  • Through its huge network and branches, the company reaches almost 90% of the country’s population.
  • As I have mentioned earlier that the company mainly fulfill the financial needs of the lower-income section, their customers mainly belong to 5k to 50k income category.
  • They have served more than 100,000 customers already within a few years of journey.
  • The company performs as a subsidiary of WGC or Wadhawan Global Capital.
  • They consider trust, empathy, and transparency as their key competitive advantages which lead them to the best customer service provider.
  • Aadhar is able to build a loan book of about a billion rupees.
  • Their service facilitates financial inclusion. They believe in transparent as well as speedy service. The company is committed to ethical and standard behaviors.

Products of the Company

They are the versatile service provider, related to housing finance. Their services are as follows:

  • Home Loan for Salaried Employees
  • Home Loan for Self Employed
  • Loan for Plot Purchase or Constructions
  • Home Improvement Loans
  • Home Extension Loans
  • Loans Against Residential or Commercial Property
  • Balance Transfer and Top Up
  • Loans for purchase or construction of the non-residential property
  • Fixed deposit.

Registered Office

Located at No. 3, ‘JVT Towers’, 8th A Main Road, Sampangi Rama Nagar,
At Bengaluru – 560 027, State- Karnataka, Nation- India

Company Management

Non-Executive Chairman of the Board

Kapil Wadhawan

Independent Director

Guru Prasad Kohli

Venkatesan Sridar

Additional Director

Suresh Mahalingam

Managing Director & CEO

Deo Shankar Tripathi

About the Company’s Promoter

Aadhar’s promoter is WGCL (Wadhawan Global Capital). WGCL is a non-deposit taking, primarily an investment company.17,597, 715 is the aggregate shareholding amount of WGCL (Paid-up capital of the company is 68.98%).

Financial Statement

Before step into the Aadhar Housing Finance Ltd NCD Review, let’s go through the annual financial record of the company.

aadhar housing finance ltd ncd review

Aadhar Housing Finance Ltd NCD Review

Look at the financial record of the company. The only drawback is in the company prospectus, there is no past record of the previous years’ financial statement. According to March 31, 2018, the profit of the year stands on 9,962. The entire record is the profit loss statement of the company. Now, let’s go through the prospectus of the company. In the DRHP (draft red herring prospectus) Earnings per share of EPS stands at 46.41 as per the last FY. The EPS is visible on the given attachment. P/E ratio, RoNW is not available here in the DRHP. Therefore, Aadhar Housing Finance Ltd NCD Review. It is advisable to check the validity of the given data. Investors may apply on a long-term basis.

The issue price of the NCD is not given yet by the company. After getting the issue price, we will get back with another updated review.

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