Aavas Financiers is engaged in the business of providing retail, affordable housing finance to low and middle income self employee customers in semi-urban and rural areas in India. It is Jaipur based company. Here, we are going to discuss Aavas Financiers IPO Review along with company’s qualitative and quantitative detail.
Aavas Financiers IPO Review Issue Details :
- IPO Opens on – September 25, 2018.
- IPO Closes on – September 27, 2018.
- Issue Price – Rs. 818- Rs. 821 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Face Value – Rs.10 per Equity Share.
- Min Order Quantity – 18 Shares.
- Market Lot – 18 Shares.
- Retail Allocation – 35%.
- Issue Size – 21,121,437 Equity Shares of Rs. 10 aggregating up to Rs. 1,734.07 Cr. Fresh Issue- [.] Equity Shares of Rs. 10 aggregating up to Rs. 400.00 Cr. and Offer for Sale- 16,249,359 Equity Shares of Rs. 10 aggregating up to Rs.[.] Cr.
- Listing Exchange At – BSE, NSE.
- Draft Prospectus – Download.
Objectives of the issue of the Company :
- The Offer of Aavas Financiers comprises a Fresh Issue by this company and an Offer for Sale by the Selling Shareholders.
- The Selling Shareholders of this company will be entitled to its respective proportion of the proceeds of the Offer for Sale after deducting their portion of the Offer related expenses and relevant taxes thereon.
- The object of Aavas Financiers for the Net Proceeds of the Fresh Issue will be utilized towards augmenting their capital base to meet their future capital requirements arising out of growth in our business.
About The Company –
- Aavas Financiers is incorporated in 2011.
- This company offers customers home loans for the purchase or construction of residential properties.
- Aavas Financiers for the extension and repair of existing housing units.
- This company is registered with the NHB as an HFC.
- Aavas Financiers has 165 branches spread across 92 districts in eight states. It has a significant presence in the four states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.
- This company had employed 1,862 personnel and 52,788 loan accounts including securitized and assigned cases.
- Aavas Financiers uses unique appraisal methodology to assess these customers individually.
Products of Aavas Financiers :
- Home Loan.
- Land Purchase and Construction Loan.
- Home Improvement Loan.
- Balance Transfer Loan.
- Home Equity (Loan Against Property).
- Micro, Small and Medium Enterprise (MSME) Loan.
Registered and Corporate Office:
201-202, 2nd Floor, Southend Square,
Mansarover Industrial Area, Jaipur-302020.
The promoters of Aavas Financiers :
Lake District and ESCL are the Promoters of Aavas Financiers Limited.
The Board of Directors of this company :
- Krishan Kant Rathi is the chairman of our Board and an independent Director of this company.
- Sushil Kumar Agarwal is the whole-time Director and CEO of this company.
- Kalpana Iyer is an independent Director of this company.
- Sandeep Tandon is an independent Director of this company.
- Ramachandra Kasargod Kamath is a non-executive nominee Director of this company.
- Vivek Vig is a non-executive nominee Director of this company.
- Nishant Sharma is a non-executive nominee Director of this company.
- Manas Tandon is a non-executive nominee Director of this company.
- Kartikeya Dhruv Kaji is a non-executive nominee Director of this company.
Competitive Strength of Aavas Financiers :
- Strong distribution network with deep penetration serving under served customers in rural and semi-urban
markets of this company.
- Aavas Financiers has in-house sourcing model leading to superior business out comes.
- The main strengths are robust and comprehensive credit assessment, risk management and collections framework of this company.
- Aavas Financiers is access to diversified and cost-effective long-term financing.
- Effective use of technology and analytics to build a scalable and efficient operating model of this company.
- Aavas Financiers had experienced management team.
Business Strategy of the Company :
- Expand the branch network to achieve deeper penetration of this company.
- The main business strategy is continue to focus on low and middle Income self employed customers of Aavas Financiers.
- Diversify their borrowing profile to optimize their borrowings costs of this company.
- Increase of the product portfolio of this company. Improve cost efficiency through use of technology and data analytics of Aavas Financiers.
- Enhance the brand of this company recall to attract new customers.
Company Financials :
In order to state Aavas Financiers IPO Review company financials description is needed.
Aavas Financiers IPO Review :
In the DRHP of the company, previous five years annual PAT (Profit After Tax) statement is attached. The company is in a developing stage. As we can see that the profit level is uplifting. In the fiscal year 2017, the profit was 571.37 and in the last year PAT was 929.33. Now, without any delay, have a look at the prospectus of the company. Earnings per share (EPS Basics and Diluted Standalone) is 15.81 and 15.21 respectively. The company has not provided price to earnings ratio in the DRHP. As per the 2018, Return on Net Worth carries 8.46 percent and NAV/Share is 157.03.
Besides the review if investors wants to get more surety regarding the IPO, they can check the NSE Bid Detail on the last day of application. You may check the application process. Grey Market Premium is also important for reviewing any IPO. However, we analyze Aavas Financiers IPO Review carry a NEUTRAL view.
Categories: IPO Review