Aptus Value Housing Finance Plans Rs 3,000-crore IPO

Aptus Value Housing Finance, backed by Sequoia Capital and WestBridge Capital, is set for a Rs 3,000 crore initial public offering, as the South India-based housing finance company looks to take advantage of a post-pandemic market rally, which lifted the broader markets to record highs. Aptus, founded by former Murugappa Group executive M Anandan, will dilute about a 15-20% stake, valuing the company at around Rs20,000 crore. ICICI Securities, Citigroup, Edelweiss Securities and Kotak were hired as the book runners to the offering, which is scheduled in the second quarter of the next fiscal year. About 55% of Aptus is held by private equity investors - Westbridge Capital, Sequoia Capital, Steadview Capital and Malabar Investment Advisors. The transaction could involve both primary and secondary infusions as some of the private equity investors would be taking a partial exit through the issue. As of December 2020, Aptus has a loan book of Rs4,000 crore. The company offers loans in the range of Rs 5-25 lakh for self-employed people. Tamil Nadu and Puducherry accounted for 54% of the company’s total portfolio, followed by Andhra Pradesh (25%) and Telangana and Karnataka (10% each). Aptus, on a consolidated basis, has consistently reported healthy profitability indicators, according to ratings firm ICRA.