Home Main IPO Aavas Financiers IPO GMP, Review, Price, Allotment, Subscription

Aavas Financiers IPO GMP, Review, Price, Allotment, Subscription

 14-Sep-18    Main IPO   MyIpo

Jaipur based Aavas Financiers Limited is the company working in the business of providing retail, affordable housing finance to low and middle-income self-employed customers in a semi-urban and rural area in India. Aavas Financiers Limited is registered with the NHB as an HFC.

 

Aavas, earlier known as AU Housing Finance. Aavas provides affordable housing loans, primarily in the underserved markets of Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh, and Delhi.

 

Lead Manager

  • Citigroup Global Markets India Private Limited
  • Edelweiss Capital Limited
  • HDFC Bank Limited
  • ICICI Securities Limited
  • Spark Capital Advisors (India) Private Limited

 

You can find Aavas Financiers IPO GMP on Grey Market Premium Page, Aavas Financiers IPO allotment status on IPO Allotment Status page and Aavas Financiers IPO Listing detail on IPO Listing Date page.

Aavas Financiers IPO Review By CNBC and Zee business

Aavas Financiers IPO Review By Brokerage Houses

Brokerage HouseReviewReports
Choice IndiaSubscribe with CautionClick Here
Angel BrokingNeutralClick Here
Aditya Birla CapitalSubscribeClick Here
Hem SecuritiesLong TermClick Here
Nirmal BangLong TermClick Here
SMCRanking ( 1.5/5 )Click Here

Choice India

On valuation front, Aavas is demanding a valuation of 5.9x to its FY18 adjusted book value, which is at a premium to its peer average of 4x. The issue seems to be fully priced, thereby leaving little scope for listing gains. Additionally, considering the future business potential, profitability, stable asset quality and risk linked to the addressable target market, we are cautiously optimistic about the outlook of the company. Thus we assign a “Subscribe with Caution” rating for the issue.

 

Angel Broking

On the valuation front, at the upper end of the IPO price band, Aavas demands price-book (PB) multiple of 4.3x on FY18 book value (considering Fresh Issue) and 69x FY18 EPS. Established listed peers are trading in the range of 2.5- 3.5x of FY18 PB and in terms of PE these players are trading at valuation of 14-35x of FY18 EPS. Thus, considering the higher valuation, intense competition, and regional concentration of its loan portfolio we recommend NEUTRAL rating to Aavas Financiers.

 

Aditya Birla Capital

We believe the company is well-poised to deliver strong earnings growth in the forthcoming years considering the underpenetrated housing finance market, niche presence of Aavas, well-managed risk matrix and efficient usage of technology. Expect the company to command rich valuations as competition intensity remains on lower side in the space Aavas operates; and the visibility of healthy 5% spread, stable asset quality and 2.5% RoA remains high. The company is adequately capitalized for superlative growth with CAR at ~61.6% as on FY18. With further capital infusion from IPO, the case is well-set for a rating upgrade which will further improve business prospects. At an upper price band of Rs 821, the stock is available at ~4.1x FY18 P/ABV and P/E ratio of 65.4x on post money basis. We recommend investors to SUBSCRIBE the issue and hold the stock from long term perspective. Listing gains may get limited considering the recent mayhem in NBFC space.

 

Hem Securities

The company is bringing the issue at p/b multiple of 3.94 on post issue book value at higher end of price band of Rs 818-821/share. . Company with its strong distribution network & deep penetration serving underserved customers in rural and semi-urban markets has shown decent financial performance over last few years. Hence , we recommend “Subscribe” on issue for long term purpose.

 

Nirmal Bang

Over a period of 5 years, the company has witnessed phenomenal growth in AUMs growing at 78% CAGR. NII and PAT growth too was robust at 78% and 96% CAGR respectively. GNPAs have been sub 1% throughout its existence, despite facing major disruptions such as demonetization, given the customer segment the company operates in. The company has been able to maintain RoAA of ~2.5% since the past 4 years and the Net interest spreads maintained at ~5% since the past 24 quarters. At the upper band, the share is trading at 5.2x (pre-IPO) and 4.3x (post-IPO) on FY18 Book Value which is towards the upper end among listed HFCs. However, a competent management team, robust growth, a long runway in rural / semi urban housing and superior asset quality make us recommend the issue as ‘SUBSCRIBE’ with a long term view.

Aavas Financiers IPO Review By MyIpo

  • Avoid

Note: As per (25-Sep) the current market situation and Grey market premium avoid this IPO. Aavas valuation is higher side compared to peers.

Aavas Financiers IPO Details

  • IPO Open : 25-Sep-18
  • IPO Close : 27-Sep-18
  • IPO Size : 1734.07 Cr
  • IPO Lot Size : 18 (Minimum Lot)
  • Price Band : 818 - 821 Per Share
  • Retail Discount : N/A
  • Minimum-Amount : 14778
  • Retail Portion : 35% and (606.92 Crs at upper price band)
  • Listing On : NSE - BSE
  • Face Value : 10 Per Equity Share
  • Equity : 16249359 Share

Aavas Financiers IPO Allotment & Listing

  • Allotment Ratio: Adding Later
  • Allotment : 04-Oct-18
  • Refund : 04-Oct-18
  • Credit To Demat A/C : 05-Oct-18
  • Listing : 8-Oct-18
  • Allotment Link : Link 1

Aavas Financiers IPO Valuation of Peers Group Companies

CompaniesEPSP/EP/BVFace Value
Repco Home34.4113.412.1410
Can Fin Homes Limited23.1212.552.872
PNB Housing Finance Limited49.5323.683.1210
Aavas Financiers Limited11.8269.484.3110

Aavas Financiers IPO Anchor Investors

Aavas Financiers IPO Subscription (no of times)

DaysQIBHNIRetailEmpTotal
Day 10.120.000.02N/A0.04
Day 20.810.120.07N/A0.29
Last Day2.770.260.25N/A0.97

Aavas Financiers IPO Listing Details

DetailsNSEBSE
Issue Price821821
Open750.00758.00
High787.00787.50
Low710.05710.00
Close774.35773.15

Aavas Financiers IPO live quote: Click Here

Aavas Financiers Financial Performance

Figure in CrFY2014FY2015FY2016FY2017FY2018
Total Revenues54.3103.6190.8305.5457.2
Total Expenses44.974.8140.9217.9315.5
Profit after tax6.319.132.857.192.9
Net margin (%)11.618.417.218.720.3

Aavas Financiers IPO Registrar

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083

Phone: +91 22 4918 6200
Email[email protected]
Website: http://www.linkintime.co.in

Aavas Financiers Address

Aavas Financiers Limited 
201-202, 2nd Floor, South End Square
Mansarover Industrial Area
Jaipur 302 020

Phone: +91 141 6618 800
Email:
 [email protected]
Website: www.aavas.in

Aavas Financiers Promoters

    Aavas Financiers IPO Prospectus

    Red Herring Prospectus Click Here
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