Blackstone's Aadhar Housing Finance targets $600 mln India IPO - sources (updated)

Aadhaar Ventures India

30/01/2024 13:01

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      Blackstone-owned lender eyes IPO filing within weeks -
sources
    

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      Plans come amid stock market, IPO filings boom in India
    

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      Aadhar Housing Finance plans to list by end 2024 - sources
    

  
    By M. Sriram
       MUMBAI, Jan 30 (Reuters) - Blackstone-owned Indian home
loans provider Aadhar Housing Finance is targeting a $600
million-650 million initial public offering (IPO) at a valuation
of up to $3 billion, two people with direct knowledge said on
Tuesday.
    Private equity group Blackstone  BX.N  acquired Aadhar for
about $300 million in 2019 as it bet on growing demand for
affordable housing and financing in India. 
    The IPO attempt is Aadhar's second shot at a listing after a
$1 billion IPO plan in 2022 was called off amid market
volatility that followed the Russia-Ukraine war.
    Aadhar plans to file its IPO papers with India's market
regulator within the next two weeks, both sources said.
    A deal would be the latest example of private equity
investors looking to sell parts of their companies amid record
stock markets in India - a rare bright spot for global
investors.
    The country is currently seeing record listing plans, driven
by expectations of political stability and a fast-growing
economy. Its stock market recently overtook that of Hong Kong to
become the world's fourth biggest, and benchmark index Sensex is
trading near record highs.
    "Blackstone wants to capitalise on these market conditions
and sell a part of its stake. Timing is key to gradually sell
down," said one of the two sources, who declined to be named as
the IPO plan is still confidential.
    Aadhar has appointed investment banks Citi  C.N , Nomura
 8604.T  and India's Kotak and ICICI as advisors for its latest
IPO filing, with a listing in Mumbai planned by May, said the
sources.
    Blackstone, Nomura and Citi declined to comment. Kotak,
ICICI and Aadhar did not respond to queries seeking comments.
    Aadhar offers housing loans of up to $18,000 to people with
monthly incomes as low as $75 in a country where rising real
estate prices have made home ownership increasingly difficult in
major cities. 
    Most of its loans are to "economically weaker sections and
low income groups", the company says.
    While mortgage loans in India are dominated by state-owned
and private banks, newer private equity-owned firms are trying
to gain market share. Investors such as Warburg Pincus and
Morgan Stanley have bet on the space in recent years. 
    Aadhar says it manages $2 billion worth of loans, with 479
branches in 20 Indian states. In 2022-23 its net profit grew 22%
to $65 million, while its total income grew 18% to $245 million,
its annual report showed.

 (Reporting by M. Sriram; Editing by Aditya Kalra, Louise
Heavens and Jan Harvey)
 ((Sriram.Mani@thomsonreuters.com;; Reuters Messaging: Twitter:
@followthemani))