Aadhar Housing Finance to Raise ₹6,000 Crore

Aadhar Housing Finance, a prominent player in India’s housing finance sector and backed by Blackstone, has announced its intent to raise up to ₹6,000 crore in fresh borrowings during the financial year 2025. This initiative aims to support the company’s strategic growth and enhance its market presence.

The funds will be sourced from various channels, including banks, non-convertible debentures (NCDs), and refinancing institutions. An official from the housing finance company indicated that last fiscal year, Aadhar secured ₹5,500 crore in borrowings, and for FY25, it aims to increase this to ₹6,000 crore, with approximately 20% of the new funds expected to come from NCDs. The cost of funds has shown stability, rising from 7.1% in FY23 to 8% in FY24. Recently, Aadhar Housing Finance raised ₹3,000 crore through an initial public offering (IPO), which included an offer for sale of ₹2,000 crore by the promoter, BCP Topco VII Pte Ltd, a subsidiary of Blackstone Group, alongside a fresh equity issuance valued at ₹1,000 crore. Of the ₹1,000 crore allocated for the primary issue, ₹750 crore is earmarked for business expansion and operational needs, while ₹250 crore will be directed towards corporate purposes.

The company plans to broaden its footprint across four to five additional states, focusing on smaller talukas and districts. Proceeds from the IPO will also be invested in enhancing technology and data science capabilities, a move aimed at improving operational efficiency and customer service. While Aadhar Housing Finance is not actively seeking new acquisitions at this moment, it remains open to acquiring high-quality portfolios. The Blackstone fund, which holds a significant stake in Aadhar, is not expected to divest any further in the near future; as of May 14, Blackstone owned a 76.48% stake in the company.

In the current fiscal year, Aadhar Housing Finance plans to open 75 new branches and hire 500 new employees. The company’s assets under management (AUM) are projected to grow by 20%-23% in FY25, building on an AUM of ₹21,100 crore at the end of FY24. Aadhar anticipates maintaining a gross non-performing asset (GNPA) ratio between 1.1% and 1.2% for FY25, bolstered by a portfolio largely comprising secured assets. This strategic borrowing initiative and expansion plan highlight Aadhar Housing Finance’s commitment to strengthening its market position while enhancing service delivery, ultimately contributing to a more robust financial ecosystem in the country.