1737 crores housing IPO open on Tuesday, Important things to know before investing
Housing Financials, Jaipur's housing finance company, is coming up with IPOs next week, ie September 25 (Tuesday). The company will raise Rs 1737 crore through this IPO market. Housing financing Loans and Mid-Class Income, semi-urban and rural areas offer retail housing finance services. The IPO will open on September 25 and close on September 27. If you want to invest in the IPO, you should first know the important thing.
Price band
The IPO price band has been fixed at Rs 818 to Rs 821 per share. At least 18 shares and then 18 points can be bid on the multiples of the shares.
1737 crore IPO
The company plans to raise Rs 400 crore through the IPO market. In this issue, some of the existing investors of the company will sell shares of 1334 crores in the primary market. Global Coordinators Book Running Lead Managers for the IPO ICICI Securities, Citigroup Global Markets Idea, Idelvice Financial Services and Spark Capital Advisors (India). Book Running Lead Managers is HDFC Bank.
What is the company's business?
The company's projects are in 8 states of the country. However, in the loan book, Rajasthan market share is only 50%. The average ticket size of the loan given by the company is 7-8 lakh rupees. The focus of the company is on small and individual loans. Due to which the risk is low. The loan rate is good.
Good business model
The company's business model is good and the customer base is strong. The company's reach is up to the customers, who can not take loans from big companies. The company has 166 branches across the country. Most of the branches are in less populated cities. Home loan segment is rapidly growing. The company is also benefiting from it.
Financials
The company's business is profitable. According to Brokerage House Cholamandalam Security, the loan book of the company has increased from 78 percent CAGR during the last 4 years from the financial year 2014 to 2018 and has gone up to 4 thousand crores today. The company's asset quality is good. The company's rating has also improved.
Investment Advice
According to Brokerage House Cholamandalam Security, the company's Capital Base is strong. The money coming from the IPO will be used to increase business. The government's focus is also on the Affordable Housing. The company can get special benefits from it. The company will also benefit from increased competition in the housing finance segment. Currently, the valuation seems to be reasonable. It can be invested in these IPOs over a longer period.
