Aptus Value Housing has a low stock market listing; the stock opens at a reduced price compared to the IPO price
Aptus Value Housing Finance shares made a low-profile listing on the stock exchange today, continuing the recent downward trend on Dalal Street. Aptus Value shares were opened for trade at Rs 329.95 per share, down 6.53% or Rs 23 each from the high end of the IPO price range of Rs 353 per share. The stock opened with losses despite the positive momentum seen in national benchmarks. The retail-focused housing finance company entered primary markets to raise Rs 2,780 crore through the IPO earlier this month. Out of the total size of the issue, Rs 500 crore was a new issue of shares while the rest was an OFS by existing investors. Aptus Value Housing serves low and middle income independent rural and semi-urban clients. The company had a market capitalization of Rs 16,351 crore on the list.
Check the price live: Aptus Value Housing Finance
Aptus Value Housing Finance’s IPO was oversubscribed by all pockets of investors. Half of the entire IPO has been reserved for Qualified Institutional Buyers (QIBs) who have subscribed for their share 32.41 times. Retail investors reserved 35% of the IPO and subscribed to the issue 1.35 times. Non-institutional investors (NII) bid for the IPO 33.91 times the part reserved for them.
Aptus Value Housing Finance offers small loans for the purchase and self-construction of residential properties, loans for home renovation and extension. The company does not offer any loans over Rs 25 lakh. In fiscal 2019 and 2021, Aptus Value Hosuing’s NII / operating profit / PAT increased at a CAGR of 43.9% / 51.0% / 54.7% to Rs 430.1 crore / Rs 350.9 crore / Rs 266.9 crore, respectively. In the previous fiscal year, its calculated NIM stood at 10.5% with an average return of 15.5%, analysts at Ventura Securities said. The brokerage firm valued the IPO at the high end of the price range at 8.6x FY21 P / BV.
Analysts at Marwadi Financial Services gave the issue a “Subscribe” rating, saying the company has a presence in large, under-penetrated markets with high growth potential and is available at a reasonable valuation against its peers. “Considering the adjusted BVPS for fiscal year 21 of Rs 50.03 on a post-issue basis, the company will be listed at a P / B of 7.06 with a market capitalization of Rs 1 74 940 mn, while its counterpart, Aavas Financiers, is trading at a P / B of 8.47 ”, they added.