Aadhar Housing Finance makes a flat debut

Mumbai: Aadhar Housing Finance made a flat stock market debut Wednesday with the stock opening at ₹315, the price at which the shares were sold in the IPO. The shares touched a high of ₹343.7 during the day, before closing at ₹332.20, 5.5% above the listing price. The company's market capitalisation on Wednesday was at ₹14,168.94 crore at the close. Analysts said investors with patience could buy the stock.

"Although the company made a debut with a flat opening, its wide geographical distribution network and strong fundamentals offer good opportunity for the long-term as its target customers are low-income groups from rural and semi-urban areas," said Raj Gaikar, analyst, Samco Securities. "The housing finance credit share of rural and semi-urban locations is rising continuously, giving housing finance companies (HFC) an opportunity to expand their operations."

The Initial Public Offering consisted of a fresh issue of ₹1,000 crore and an offer for sale of ₹2,000 crore. The issue was subscribed 25.5 times on final day of bidding. The company is focused on the low-income housing segment (ticket size less than ₹15 lakh) in India.