Kedaara, Partners Group-owned Aavas files India IPO

The offer will consist of an undisclosed number of new shares worth up to INR4 billion ($59 million), along with up to 16 million shares from current shareholders. Kedaara will sell nine million shares, while Partners Group will sell six million; the investors currently hold 36 million and 25 million shares, respectively. Pricing terms have not been announced.

According to the prospectus, Aavas will use the proceeds from the fresh issue to augment its capital base, which will help it meet capital requirements for its growing mortgage business and ensure compliance with banking regulations.

The company provides loans to low and medium-income individuals in rural and semi-urban areas in India that lack access to formal banking credit, primarily for the purchase or construction of residential properties and the extension and repair of existing housing units.

Its loan book stood at INR40.7 billion as of March 2018, up from INR26.9 billion the year before, with gross non-performing assets of INR107 million – less than any other Indian affordable housing finance provider. Total revenue for the year ended March 2018 came to INR4.6 billion, up from INR3.1 billion the previous year. Over the same period, net profit grew from INR571 million to INR929 million.

Founded in 2011 as Au Housing Finance, Aavas was sold to Kedaara and Partners Group in 2016 for INR8.9 billion. The transaction was aimed at providing Aavas’ former parent Au Financiers with the working capital to satisfy regulatory requirements for its acquisition of a small finance bank license.

Kedaara is also an investor in Au, now called Au Small Finance Bank. The firm owns about 11 million shares in the NBFC, having sold 10.8 million shares in Au’s IPO last year for INR358 each.

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• Topics
• South Asia
• Financials
• IPO
• India
• Kedaara Capital
• Partners Group
• Financial Services