AAVAS FINANCIERS IPO: What’s your call?

As on 27 September 2018
Kostak INR NIl,
Subject to INR NIL

Total Subscription:
on Day 3(on 27.09.2018 at 05:00 PM)
QIB : 2.77 times
NII :  0.26 times
RII : 0.25 times
Total : 0.97 times

Recommendation by Brokerage firms
  • Cholamandalam Securities: 
  • Choice Broking
  • Emkay Global: 
  • Anand Rathi: 
  • Reliance Securities: 
  • Asit C. Mehta: 
Company details
  • AAVAS FINANCIERS formally started its operations in March, 2012.
  • AAVAS is Jaipur based company.
  • Formerly it was subsidiary of AU small finance bank.
  • The company Started its business as a private limited company in 2011 and then it converted in public limited company in 2013.
  • AAVAS is mainly providing housing loan to customers having low income in semi-urban and rural areas.
  • AAVAS is providing loans to the people who are self-employed and having small businesses. For example they can be having grocery shops, tiffin centers, beauty parlous and other businesses in rural areas.
  • AAVAS also launched “Special Urban Low Income Housing Product” and “Specific Women Ownership Product” in line with NHB’s refinance scheme for the Special Urban Housing Refinance Scheme for Low Income Households and Refinance Scheme for Women.
Strengths of a company
  • According to ICRA Report, the Company had the lowest GNPAs as of March 31, 2018 and the second highest growth rate of assets under management for the last three financial years, among affordable housing finance companies that had assets under management between Rs 25 billion and Rs 200 billion.
  • Disbursements grew 65% annually between FY14 and FY18.
  • CRISIL has upgraded its rating on the long-term facilities of AAVAS Financiers Limited (AAVAS) to ‘CRISIL A+/Stable’ from ‘CRISIL A/Stable’.
  • The networth was Rs 1098 crore as on March 31, 2018 following the recent capital infusion of Rs 400 crore.
  • In-line with fiscal 2017, the return on managed assets ratio was 2.4% for fiscal 2018.
Objects of the Issue
  • The Offer comprises a Fresh Issue by our Company and an Offer for Sale by the Selling Shareholders.
  • The object for which the Net Proceeds  of the Fresh Issue will be utilized towards augmenting its capital base to meet its future capital requirements arising out of growth in the business.
Financial performance
Particulars For the year/period ended (in Rs. Millions)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
Total Assets 38,174.52 24,506.06 17,107.79 8523.83 4179.23
Total Revenue 4,572.45 3,054.92 1,908.99 1,037.55 543.22
Profit After Tax 929.33 571.37 327.80 190.91 63.37


Financials parameters:

Earnings per Share 2017-18 (9M) INR 15.21
Upper Price Band/last EPS: 51.18
Book Value of the Share as on 31.03.2018 INR 157.03
Upper offer price/Book Value Ratio: 5.23
Return on Net Worth: 8.46 %

The promoters :


IPO Timetable:

Opening Date : 25 September 2018
Closing Date: 27 September 2018
Issue Type: Book Built Issue IPO:
Fresh issue of Rs. 400 crore and offer for sale upto  8815439 shares amount to Rs.723.75 crore, aggregating to INR 1123.75 crore
Face Value: INR 10 per share
Price Band: Per Equity Share: INR 818 to INR 821
Minimum Order Quantity: 18
Minimum Application Amt for RII INR : 14778
Listing will at: BSE,NSE

Allotment and listing
  • Basis of Allotment: 03-October-2018
  • Refunds: 04-October-2018
  • Credit to demat accounts:05-October-2018
  • Listing: 06-October-2018
Peer Comparison:

Repco Home Finance:  PE 14.39
PNB Housing Finance:  PE 23.45
Can Fin Homes PE:  13.36
Gruh Finance: 33.7
Aavas Financiers: 69.5

Lead Managers:

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


Link Intime India Private Limited

Registered Office of the Company :

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

DRHP Draft Prospectus

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