Aadhar Housing Finance Big Bang $1-Billion IPO
Blackstone, the world’s largest alternative asset manager and the largest owner of commercial real estate in India, has filed a draft red herring prospectus with market regulator Sebi for a mega initial public offering (IPO) by its portfolio company Aadhar Housing Finance to raise Rs 7,300 crores.
The IPO will be a combination of fresh and secondary issue of shares. Public markers are in a very good phase right now. Affordable housing finance collections are holding up quite well in the listed space and in this segment, the spread is wider.
The listing of Aadhar Housing Finance would be the first IPO of an Indian portfolio company backed by the US private equity giant in the past five years. ICICI Securities, Nomura, Citi and SBI Capital Markets are the investment bankers advising Blackstone on the offering. Law firms Cyril Amarchand Mangaldas and Khaitan and Co are the legal advisors.
The net proceeds of the IPO will be utilized for increasing the firm’s capital base, which will be utilized towards the company’s business and growth including towards onwards lending, payment of operating expenditure, purchase of assets and repayment of outstanding loans and interest thereon as part of it’s business activities.