Aavas Financiers IPO Details

Issue Open Sep 25, 2018
Issue Close Sep 27, 2018
IPO Price ₹821
Face Value ₹10
IPO Size ₹1,734.07 Cr
Listing At BSE, NSE
IPO Lot Size 18
THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE. PURCHASE OR SUBSCRIBE TO SECURITIES NOT FOR PUBLICATION OR DISTRIBUTION. DIRECTLY OR INDIRECTLY OUTSIDE INDIA
SAPNE AAPKE, SAATH HAMAARA
AAVAS FINANCIERS LIMITED

Our Company was incorporated as 'Au Housing Finance Private Limited' on February 23, 2011, as a private limited company under the Companies Act 1956, with a certificate of incorporation granted by the Registrar of Companies. Rajasthan at Jaipur ("RoC"). Pursuant to a special resolution passed by our shareholders on January 10, 2013, our Company was converted into a public limited company and our name was changed to 'AU Housing Finance Limited' Consequently, the RoC certified the change of name upon conversion to a public limited company on January 11, 2013. Thereafter, pursuant to a special resolution passed by our shareholders on February 23, 2017, the name of our Company was changed to 'Aavas Financiers Limited' and consequently, a fresh certificate of incorporation dated March 29, 2017 was issued by the RoC. For details of change in name and registered office of our Company, see "History and Certain Corporate Matters" on page 173 of the prospectus dated October 1, 2018 ("Prospectus").

Registered and Corporate Office: 201-202, 2nd Floor, South End Square, Mansarover Industrial Area, Jaipur 302020, Rajasthan, India. Tel: +91 1416618800 Fax: +91 1416618861. Contact Person: Sharad Pathak. Company Secretary and Compliance Officer Tel: +911416618800 Fax: +91 1416618861; E-mail: ipo@aavas.in Website: www.aavas.in; Corporate Identity Number: U65922RJ2011PLC034297.

OUR PROMOTERS: LAKE DISTRICT HOLDINGS LIMITED AND PARTNERS GROUP ESCL LIMITED

Our Company has registered the Prospectus dated October 1, 2018 with the Registrar of Companies, Rajasthan at Jaipur and the Equity Shares are proposed to be listed on the BSE Limited ("BSE") and the National Stock Exchange of India Limited ("NSE") and the trading will commence on Monday, October 8, 2018.

BASIS OF ALLOTMENT

INITIAL PUBLIC OFFERING OF 19,979,503 EQUITY SHARES* OF FACE VALUE OF 710 EACH (THE "EQUITY SHARES") OF AAVAS FINANCIERS LIMITED (OUR "COMPANY" OR THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 821 PER EQUITY SHARE (INCLUDING SHARE PREMIUM OF RS. 811 PER EQUITY SHARE) (THE "OFFER PRICE") AGGREGATING TO RS. 16,403.17 MILLION (THE "OFFER") COMPRISING A FRESH ISSUE OF 4,384,897 EQUITY SHARES* BY OUR COMPANY AGGREGATING UP TO RS. 3,600.00 MILLION* (THE "FRESH ISSUE") AND AN OFFER FOR SALE OF 15,594,606 EQUITY SHARES* AGGREGATING TO RS. 12,803.17 MILLION' INCLUDING AN OFFER FOR SALE OF 8,460,229 EQUITY SHARES AGGREGATING TO RS. 6,945.85 MILLION BY LAKE DISTRICT HOLDINGS LIMITED ("LAKE DISTRICT"), 4,109,371 EQUITY SHARES AGGREGATING TO RS. 3,373.79 MILLION BY PARTNERS GROUP ESCL LIMITED ("ESCL" AND TOGETHER WITH LAKE DISTRICT, "PROMOTER SELLING SHAREHOLDERS"), 226,816 EQUITY SHARES AGGREGATING TO RS. 186.22 MILLION BY KEDAARA CAPITAL ALTERNATIVE INVESTMENT FUND - KEDAARA CAPITAL AIF 1 ("KEDAARA AIF-1" OR "INVESTOR SELLING SHAREHOLDER"), AND 1,803,393 EQUITY SHARES AGGREGATING UP TO RS. 1,480.59 MILLION BY PARTNERS GROUP PRIVATE EQUITY MASTER FUND LLC ("MASTER FUND" OR "PROMOTER GROUP SELLING SHAREHOLDER") AND 874,834 EQUITY SHARES AGGREGATING TO RS. 718.24 MILLION BY SUSHIL KUMAR AGARWAL AND 119,963 EQUITY SHARES AGGREGATING TO RS. 98.49 MILLION BY VIVEK VIG (TOGETHER, THE "OTHER SELLING SHAREHOLDERS" AND TOGETHER WITH THE PROMOTER SELLING SHAREHOLDERS. INVESTOR SELLING SHAREHOLDER AND PROMOTER GROUP SELLING SHAREHOLDER. THE "SELLING SHAREHOLDERS" AND SUCH OFFER FOR SALE. THE "OFFER FOR SALE")*. THE OFFER CONSTITUTES 25.58% OF THE POST-OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

*Please note that as per the Red Herring Prospectus, up to 21,121,466 Equity Shares were made available for Bidding. However, based on the subscription received, as, mentioned in the Prospectus, the Fresh Issue has been considered for allotment to the extent of minimum subscription of 90% i.e. 4,384,897 Equity Shares and the balance 10% from the Fresh Issue i. e. 487,210 Equity Shares has been reduced from the Offer. Further, the Equity Shares in the Offer for Sale have been proportionately reduced by 654,753 Equity Shares i.e. 15,594,606 Equity Shares have been retained in the Offer.

OFFER PRICE: RS 821 PER EQUITY SHARE OF FACE VALUE OF RS 10 EACH

THE OFFER PRICE IS 82.10 TIMES THE FACE VALUE OF THE EQUITY SHARES

Risks to Investors:

I. The five Merchant Bankers associated with the issue have handled 45 public issues in the past three years out of which 14 issues closed below the issue price on listing date.
II. The Price/Book ratio based on Net Assets Value for 2018 (the latest full financial year) for the issuer at the upper end of the Price band is as high as 5.23 as compared to the average industry peer group ratio of 5.92.
III. Average cost of acquisition of equity shares for the selling shareholders viz. Lake District, ESCL, Master Fund, Kedaara AIF-1, Sushil Kumar Agarwal and Vivek Vig, are Rs. 245.07, Rs. 245.07, Rs. 245.07, Rs. 245.07, Rs. 201.76 and Rs. 251.24, respectively and offer price at upper end of the price band is significantly high at Rs. 821.00.

BID/ OFFER PERIOD*

OPENED ON*: TUESDAY, SEPTEMBER 25, 2018

CLOSED ON: THURSDAY, SEPTEMBER 27, 2018

*The Anchor Investors Bidding Date was one Working Day prior to the Bid/Offer Opening Date i.e. Monday, September 24, 2018.

The Offer has been made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 (the "SCRR") through the Book Building Process and in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (the "SEBIICDR Regulations"), wherein not more than 50% of the Offer was available for allocation to Qualified Institutional Buyers ("QIBs") (the "QIB Category"), of which the Company and the Selling Shareholders have, in consultation with the GCBRLMs and BRLM, allocated 60% of the QIB Category to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (the "Anchor Investor Portion"), of which one-third was reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation was made to Anchor Investors (the "Anchor Investor Allocation Price"). Further, 5% of the QIB Category (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the QIB Category was available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer was available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer was available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Investors (except Anchor Investors) were required to mandatorily participate in this Offer only through the Application Supported by Blocked Amount ("ASBA") process, and were required to provide details of their respective bank account in which the B Amount was blocked by the SCSBs. Anchor Investors were not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see "Offer Procedure" on page 475 of the Prospectus.

The Offer received 72,106 applications for 2,05,53.948 Equity Shares (prior to technical rejections) resulting in 0.9731 times subscription. The details of the applications received in the Offer from various categories are as under: (before technical rejections):

Sr. No. Category No. of applications No. of Equity Shares applied No. of Equity Shares reserved No. of times subscribed Amount (Rs.)
A. Retail Individual Investors

71,986

14,93,028

7,392,514

0.2020

1,22,59,11,700.00

B Non-lnstitutional Investors

31

4,54,194

3,168,220

0.1434

37,28,93,274.00

C. Qualified Institutional Investors

29

1,17,20,412

4,224,293

2.7745

9,62,24,58,252.00

D. Anchor Investors

60

68,86,314

6,336,439

1.0868

5.65,36,63,794.00

  Total

72.106

2,05,53,948

21,121,466

0.9731

16,87,49,27,020.00

Final Demand

A summary of the final demand as at different Bid prices is as under:

Sr. No. Bid Price No. of Equity Shares (%) to Total Cumulative Total Cumulative % of Total
1 818

5,922

0.04

5,922

0.04

2 819

1,836

0.01

7,758

0.05

3 820

2,412

0.02

10,170

0.07

4 821

1,27,65,564

88.64

1,27,75,734

88.71

5 9,999 (CUTOFF)

16,26,660

11.29

1,44,02,394

100.00

  TOTAL

1,44,02,394

100.00

 

 

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being the NSE on Wednesday, October 3, 2018.

A. Allotment to Retail Individual Investors (after technical rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at the Cut-Off Price or at the Offer Price of Rs. 821/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.1991 times. The total number of Equity Shares Allotted in Retail Portion is 14,71.500 Equity Shares to 70,971 successful Retail Individual Investors. The under subscribed portion of 5,921,014 Equity Shares in the Retail Category has been spiffed over to Qualified Institutional Buyers. The category-wise details of the Basis of Allotment are as under:

Category No. of applications received % of Total Total No. of Equity Shares applied % to Total No. of Equity Shares Allotted per Bidder Ratio Total No. of Equity Shares Allotted
18 68,794 96.93 12,38,292 84.15 18 1:1 12,38,292
36 917 1.29 33,012 2.24 36 1:1 33,012
54 282 0.40 15,228 1.03 54 1:1 15,228
72 69 0.10 4,968 0.34 72 1:1 4,968
90 101 0.14 9,090 0.62 90 1:1 9,090
108 62 0.09 6,696 0.46 108 1:1 6,696
126 57 0.08 7,182 0.49 126 1:1 7,182
144 14 0.02 2,016 0.14 144 1:1 2,016
162 7 0.01 1,134 0.08 162 1:1 1,134
180 38 0.05 6,840 0.46 180 1:1 6,840
198 5 0.01 990 0.07 198 1:1 990
216 11 0.02 2,376 0.16 216 1:1 2,376
234 614 0.87 1,43,676 9.76 234 1:1 1,43,676
TOTAL 70,971 100.00 14,71,500 100.00     14,71,500

Note: Unsubscribed portion of 59,21,014 Equity Shares spilled over to QIB Category.

B. Allotment to Non-lnstitutional Investors (after technical rejections)

The Basis of Allotment to the Non-lnstitutional Investors, who have bid at the Offer Price of Rs. 821/- per Equity Share, was finalized in consultation with the NSE. The Non-lnstitutional Category has been subscribed to the extent of 0.1424 times. The total number of Equity Shares Allotted in this category is 4,51,152 Equity Shares to 30 successful Non-Institutional Investors. The under subscribed portion of 2,717,068 Equity Shares in the Non Institutional has been spilled over to Qualified Institutional Buyers. The category-wise details of the Basis of Allotment are as under :

Category No. of Applications Received % of Total Total No. of Equity Shares Applied % to Total No. of Equity Shares Allotted per Bidder Ratio Total No. of Equity Shares Allotted
252 6 20.00 1,512 0.34 252 1:1 1,512
324 1 3.33 324 0.07 324 1:1 324
360 1 3.33 360 0.08 360 1:1 360
468 1 3.33 468 0.10 468 1:1 468
486 2 6.67 972 0.22 486 1:1 972
504 1 3.33 504 0.11 504 1:1 504
540 1 3.33 540 0.12 540 1:1 540
612 2 6.67 1,224 0.27 612 1:1 1,224
1,080 1 3.33 1,080 0.24 1.080 1:1 1,080
1,206 1 3.33 1,206 0.27 1.206 1:1 1,206
1,332 1 3.33 1,332 0.30 1,332 1:1 1,332
1,818 1 3.33 1,818 0.40 1.818 1:1 1,818
2,070 1 3.33 2,070 0.46 2,070 1:1 2,070
2,448 1 3.33 2,448 0.54 2,448 1:1 2,448
3,042 1 3.33 3,042 0.67 3,042 1:1 3,042
4,860 1 3.83 4,860 1.08 4,860 1:1 4,860
5,004 1 3.33 5,004 1.11 5,004 1:1 5,004
6,084 1 3.33 6,084 1.35 6,084 1:1 6,084
9,000 1 3.33 9,000 1.99 9,000 1:1 9,000
37,494 1 3.33 37,494 8.31 37,494 1:1 37.494
54,810 1 3.33 54,810 12.15 54,810 1:1 54,810
72,000 1 3.33 72,000 15.96 72,000 1:1 72,000
2,43,000 1 3.33 2,43,000 53.86 2,43,000 1:1 2,43,000
TOTAL 30 100 4,51,152 100     4,51,152

Note: Unsubscribed portion of 27,17,068 Equity Shares spilled over to QIB Category.

C. Allotment to QIBs (Excluding Anchor Investors)

Allotment to QIBs, who have Bid at the Offer Price of Rs. 821/- per Equity Share, has been in consultation with NSE. This category has been subscribed to the extent of 0.9112* times of QIB Category. As per the SEBI ICDR Regulations, Mutual Funds were Allotted 5% of the Equity Shares of QIB Category available i.e. 6,43,119 Equity Shares (includes under subscribed portion of 296,051 Equity Shares spilled over from Retail Category and 135,853 Equity Shares spilled over from Non Institutional Category) and other QIBs and unsatisfied demand of Mutual Funds were Allotted the remaining available Equity Shares i.e. 1,22,19,256 Equity Shares (includes under subscribed portion of 5,624,963 Equity Shares spilled over from Retail Category and 2,581,215 Equity Shares spilled over from Non Institutional Category) on a proportionate basis. The total number of Equity Shares Allotted in the QIB Category is 1,17,20,412 Equity Shares, which were allotted to 29 successful QIB Bidders. The category-wise details of the Basis of Allotment are as under:

Category FIs/Banks MFs ICs VCs AIF FII/FPC Others TOTAL
QIB - 64,36,188 7,30,728 - - 45,53,496 - 1,17,20,412

* The Registrar to the Offer informed that in QIB Category 29 valid applications for 11,720,412 Equity Shares were received at higher end of the price band against 4,224,293 Equity Shares reserved for this category resulting in subscription of 2.7745 times. However, after including the spillover of 8,638,082 Equity Shares i.e. 5,921,014 Equity Shares from Retail Individual Investors and 2,717,068 Equity Shares from Non Institutional Category, resulting into total of 12,862,375 Equity Shares reserved for this category resulting in subscription of 0.9112 times.

D. Allotment to Anchor Investors

The Company and the Selling Shareholders, in consultation with the GCBRLMs and BRLM, have allocated 63,36,439 Equity Shares to 34 Anchor Investors (through 60 Applications) at the Anchor Investor Offer Price of Rs. 821/- per Equity Share in accordance with the SEBI ICDR Regulations. This represents 60.00% of the QIB Category.

Category FIs/Banks MFs ICs VCs AIF FII/FPC Others TOTAL
QIB 6,36,163 22,28,976 5,48,064 - 1,21,806 27,40,518 60,912 63,36,439

The IPO Committee of our Company on Thursday, October 4, 2018 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum-lntimations and/ or notices will be dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Offer Account have been issued on Thursday, October 4, 2018 and payment to non-Syndicate brokers have been issued on Thursday, October 4, 2018. In case the same is not received within ten days, investors may contact the Registrar to the Offer at the address given below The Equity Shares Allotted to the successful Allottees have been uploaded on Thursday, October 4, 2018 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company has filed the listing application with NSE and BSE on Thursday, October 4, 2018 and the trading will commence on Monday, October 8. 2018.

All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the allotment made have been hosted on the website of the Registrar to the Offer, Link Intime India Prrvate Limited at www.linkintime.co.in

All future correspondence in this regard may kindly be addressed to the Registrar to the Offer quoting full name of the first/ sole Bidder. Bid cum Application Form number, Bidder DP ID, Client ID, PAN, date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares applied for, the name and address of the Designated Intermediary where the Bid cum Application Form was submitted by the Bidder and a copy of the Acknowledgment Slip received from the Designated Intermediary at the address given below:

Link Intime India Private Limited
C-101,1st Floor. 247 Park. L B S. Marg. Vikhroli (West), Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200; Fax: +91 22 4918 6195; E-mail: aavas.ipo@linkmtime.co.in
Website: www.linkintime.co.in; Investor Grievance e-mail: aavas.ipo@linkmtime.co.in
Contact person: Shanti Gopalknshnan: SEBI Registration No:. INR000004058
For AAVAS FINANCIERS LIMITED
On behalf of the Board of Directors
Place: Jaipur Sd/
Date. October 5,2018 Company Secretary and Compliance Officer

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF AAVAS FINANCIERS LIMITED.

AAVAS FINANCIERS LIMITED had proposed, subject to, applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its Equity Shares and has filed the Prospectus with the RoC The Prospectus shall be available on the websites of SEBI, BSE, NSE at www.sebi.gov in, www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the GCBRLMs, i.e. ICICI Secuntes Limited, Citigroup Global Markets India Private Limited, Edelweiss Financial Services Limited and Spark Capital Advisors (India) Private Limited at www.icicisecurities.com, www.online.citibank.co.in/rhtm/citigroupglobatscreen1.htm, www.edetweissfin.com and www.sparkcapital.in, respectively and BRLM, i.e. HDFC Bank Limited at www.hdfcbank.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see "Risk Factors" on page 17 of the Prospectus.

The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U S. Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold (i) outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur; and (ii) to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act), pursuant to the private placement exemption set out in Section 4(a) of the U.S. Securities Act.

Aavas Financiers IPO Basis of Allotment FAQs

  1. 1. How shares are allotted in Aavas Financiers IPO?

    Check the basis of allotment document above to know about how the shares are allocated in Aavas Financiers IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).
  2. 2. What is Aavas Financiers IPO basis of allotment status?

    The Aavas Financiers IPO basis of allotment (published above) tells you how shares are allocated to you in Aavas Financiers IPO and category wise demand of IPO share.

    Visit the Aavas Financiers IPO allotment status page to check the number of shares allocated to your application.

  3. 3. What is Aavas Financiers IPO allotment process?

    Check the basis of allotment document above to know about how the shares are allocated in Aavas Financiers IPO. Note that there is a separate rule for allotment in each investor category (i.e. Retail, Non-Institutional, Institutional, Employee).

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