Aadhar Housing Finance debuts with 4.6% gain; anticipation on 10% gain

Aadhar Housing Finance made its debut on May 15, 2024, with its shares closing the day with a nearly 5 percent gain. Despite opening flat at Rs 315 on the NSE and dipping to a low of Rs 292 in the morning, the stock quickly rebounded within the first hour of trading. It surged to an intraday high of Rs 343.70 before settling at Rs 329.45, marking a 4.6 percent increase over the issue price of Rs 315.

However, the listing performance fell short of analysts' expectations, who anticipated a debut with over 10 percent gains, considering the robust subscription numbers. The recent market volatility likely influenced the subdued listing.

On the BSE, the stock closed at Rs 329.55, up 4.62 percent, after fluctuating between an intraday high of Rs 343.20 and a low of Rs 293.35.

During the trading session, Aadhar Housing Finance saw significant volumes, with 7.14 crore equity shares traded on the NSE and 32.96 lakh shares on the BSE.

The company's public issue, launched the previous week, raised Rs 3,000 crore through a combination of fresh issue shares worth Rs 1,000 crore and an offer-for-sale (OFS) of Rs 2,000 crore. The IPO, which garnered subscription 25.49 times during May 8-10, had a price band of Rs 300-315 per share.

Aadhar Housing Finance primarily caters to the retail market, focusing on the low-income housing segment, serving economically weaker and low-to-middle-income customers. The average loan size was Rs 9 lakh in 2022 and Rs 10 lakh in 2023.