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Aadhar Housing Finance IPO Opens On May 8: Should You Subscribe? Check Expert Analysis

Are you wondering whether to invest in Aadhar Housing Finance IPO? Read on to find out the expert analysis.

Aadhar Housing IPO: Should You Subscribe? Check Expert Analysis

Aadhar Housing Finance IPO will make debut on May 8, 2024. The subscription window will close on May 10, 2024. The price band is set at Rs 300 to Rs 315 each share. Now, the investors are excited to know whether they have to invest or not?

Here is the detailed analysis of the Aadhar Housing Finance IPO by Tarun Singh, Founder and Managing Director of Highbrow Securities.

Aadhar Housing Finance IPO: Should You Subscribe? Check What Tarun Singh Says

To critically understand the Aadhar Housing Finance IPO, it is essential to analyze the implications of the IPO’s composition in terms of the fresh issue versus the Offer for Sale (OFS). While this IPO seems promising, particularly with its commitment to raising Rs 3,000 crore, comprising both a fresh issue and an OFS, the notable concern revolves around the substantial portion attributed to the OFS. This is especially concerning considering it mainly benefits the selling shareholder, in this case, Blackstone Inc.

The structure of this particular IPO, with only a third of the proceeds (Rs 1,000 crores) coming from fresh issues and the rest from OFS, warrants a deeper exploration into its implications for potential investors and the company itself. This balance raises a question about the growth orientation of the IPO.