Aptus Value Housing Finance Ltd is out with its IPO. It closes on August 12, 2021. It is the first housing finance NBFC to go public this year. The company works quite differently from other listed housing finance companies. This one aims at rural and semi-urban areas while targeting lower and middle-income groups. What is so unique about Aptus Value Housing Finance Ltd.? Should you invest? Read on for more details.

Business Model

The company focuses on the lower and middle-income categories of customers, primarily targeting rural and semi-urban areas. It offers loans for buying land, self-construction, renovation, and business loans to name a few.  

The company’s Assets Under Management (AUM) has grown at 34.5% CAGR since March 2019 and now stands at Rs 4,068 crore.

Aptus Value has 190 branches spread across 75 districts in states like Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, and Puducherry. These states have high per-capita incomes, better financial literacy, and GDP growth rates. Close to ~56 of its AUM comes from Tamil Nadu, while ~24% of AUM is from Andhra Pradesh. The remaining AUM is from Puducherry, Karnataka, and Telangana. 

What is fascinating about the company is its client base. Close to 99.5% of its AUM comes from customers earning less than Rs 50,000 a month. As of March 2021:

  • Self-employed customers contributed to ~73% of AUM
  • Nearly 27% of AUM was from salaried customers. 
  • Close to 40% of its customers were first time borrowers. 
  • Around 66% of its customers fall in low income group


Total Revenue655.24523.72337.11
Net Profit266.94211.01111.56
Net Interest Income448.7339.2220.9
Total Debt2,515.072,021.651,606.06
Return on Asset (%)6.575.9
Gross NPA (%)20.70.7
Net NPA (%)
All Amount in Rupees Crore

The finances of the company seem outstanding in today’s times, in a market affected with high NPAs (bad loans), businesses shut and credit flow broken. 

Over a period of three years, from FY19 to FY21:

  • The company’s Total Revenue jumped by 94.47% to Rs 655.25 crore.
  • It’s Net Profit more than doubled from to Rs 266.94 crore in FY21.
  • The company’s Net Interest Income (NII) also doubled, growing by ~103% over three years. NII is the income received by a bank or company on interest paid by customers on borrowed money. 
  • Total Debt increased by 56% over three years.
  • The company’s Net NPA increased from 0.5% to 1.7%.
  • It’s Gross NPA increased from 0.7% to 2.0%.

IPO In A Nutshell

IPO Opening DateAug 10, 2021
IPO Closing DateAug 12, 2021
Issue TypeBook Built Issue IPO
IPO PriceRs 346 to Rs 353 per equity share
Market Lot42 Shares (1 lot)
Min Order Quantity42 Shares
Face ValueRs 2 per equity share
Listing AtBSE, NSE
Issue SizeAggregating to Rs 2,780.05 crore
Fresh IssueAggregating to Rs 500 crore
Offer for SaleAggregating to Rs 2,280.05 crore
All Amount in Rupees Crore

The proceeds under ‘Offer For Sale’ will not go to the company and will instead go to the shareholders selling their stake. The Rs 500 crore raised under ‘Fresh Issue’ will be used towards strengthening the capital base of the company


Aptus Value Housing Finance Ltd. operates in lower and middle-income housing sectors with other players like Aadhar Housing Finance Ltd., Aavas Financiers Ltd., and Repco Housing Finance Ltd

The company has a mid-sized AUM, in an industry where Aadhar Housing Finance and Aavas Financiers have a loan book of more than Rs 10,000 crore. This leaves some untapped potential for the company, which is growing at a very fast pace. 

Coming to the risk profile of the company. Aptus caters to self-employed/salaried customers who mostly live in rural and semi-urban areas and belong to lower or middle-income groups. This is the kind of profile that had higher default rates during the lockdown. This is likely because such loans are unsecured and the customers do not have a strong savings nest. In case of a financial calamity like the COVID-19 pandemic, the company can face a greater number of NPAs. Another matter of concern is the geographic concentration of the states of Tamil Nadu and Andhra Pradesh. Any major calamity in these states could impact the company’s cash flows. 

What are your opinions on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.