Aadhar Housing Finance IPO Lists Flat, Then Gains Momentum

Aadhar Housing Finance IPO opens Flat, moves higher

Aadhar Housing Finance IPO had a flat listing on 15th May 2024, listing flat on the NSE (exactly at the issue price) but managed to close with smart gains of 5.46% over the listing price. The stock of Aadhar Housing Finance Ltd closed the day at ₹332.20 per share, a premium of 5.46% over the listing price of ₹315 per share and also a premium of 5.46% over the IPO issue price of ₹315 per share. The IPO allottees of Aadhar Housing Finance Ltd are likely to be pleased at the way the stock managed to open flat but rally sharply, despite the flat to negative vibes from the Nifty and the Sensex during the day of listing.

The pattern was largely similar on the BSE also, with the stock opening at a small discount and then rallying further during the day. On the Bombay Stock Exchange (BSE), the stock of Aadhar Housing Finance IPO listed at ₹314.30 per share, a marginal discount of -0.22% on the IPO issue price of ₹315 per share. For the day, the stock closed on the BSE at ₹329.55, an overall premium of 4.85% on the IPO listing price of ₹314.30 per share and also a premium of 4.32% over the issue price of ₹315 per share.  On the NSE, the stock of Aadhar Housing Finance Ltd closed the listing well below high price of the day. On the BSE also, the stock of Aadhar Housing Finance Ltd closed below the high price of the day, but well above the low price of the day.

Read more about Aadhar Housing Finance IPO

Stock gains amidst volatility in the frontline indices

While the closing price of Aadhar Housing Finance Ltd on 15th May 2024 was above the IPO issue price on both the stock exchanges, it stayed well below the upper circuit at the close on NSE and BSE. What is more interesting is that on both the stock exchanges, the stock of Aadhar Housing Finance Ltd closed well above the issue price and the listing price of the day. What is more gratifying about the performance is that the strong close on the NSE and the BSE came on a day when there was volatility driven selling on the NSE and the BSE.

On 15th May 2024, the Nifty closed -17 points lower while the Sensex closed -118 points lower. On both the exchanges, it was more an example of the indices seeing a sell-off by the traders from higher levels and the high levels of the VIX preventing the indices from sustaining higher levels at close. The negative sentiments were triggered by several factors like the persistent FPI selling, the higher than expected VIX (that has stayed above the 20 mark for some time now), the ongoing crisis in the Red Sea and West Asia, as well as the Q4 results doing better on sales, but faltering on net profits. There is also the political uncertainty ahead of the electoral outcome on June 04, 2024.

IPO subscription and pricing details

The stock had reported modest to strong subscription in the IPO. The subscription was 26.76X  overall and QIB subscription was at 76.42X. In addition, the retail portion had got subscribed 2.58X in the IPO while the HNI / NII portion actually got subscribed 17.33X. Hence the listing was expected to be relatively flat positive. However, while the listing was flat, the performance of the stock subsequently showed a lot of strength and character, which is what eventually matters. At the close, the stock managed to close well above the IPO price and the listing price on both stock exchanges on 15th May 2024.

The IPO price was fixed at the upper end of the band at ₹315 per share which was anyways along expected lines considering the full subscription in the IPO and the fact that the anchor allocation had also been done at the upper band price. The price band for the IPO was ₹300 to ₹315 per share. On 15th May 2024, the stock of Aadhar Housing Finance Ltd listed on the NSE at a price of ₹315 per share, a flat listing over the IPO issue price of ₹315 per share. On the BSE also, the stock listed at ₹314.30 per share, a discount of -0.22% on the IPO issue price of ₹315 per share. Here is the Aadhar Housing Finance Ltd listing story on 15th May 2024.

How the stock of Aadhar Housing Finance IPO closed on both exchanges

On the NSE, Aadhar Housing Finance Ltd closed on 15th May 2024 at a price of ₹332.20 per share. That is a first day closing premium of 5.46% on the issue price of ₹315 and also a premium of 5.46% on the listing price of ₹315 per share. In fact, the listing price turned out to be the mid-point price of the day with the stock gyrating above and well below the listing price, although it steered clear of the upper and lower circuits. On the BSE also, the stock closed at ₹314.30 per share. That represents a first day closing premium of 4.62% above the IPO issue price of ₹315 per share and a premium of 4.85% above BSE listing price of ₹314.30 per share.

On both the exchanges, the stock listed flat to marginally lower on 15th May 2024, but managed to close Day-1 rallying higher in the day. There are some key points to note here. Normally, the mainboard IPOs have a circuit filter of 20% either ways; but in the case of Aadhar Housing Finance Ltd, the circuit filter was set at 10% either ways. The stock gyrated between the upper and lower circuits on both the stock exchanges, although it did get quite close to the circuits. The stock traded on the NSE and the BSE in the normal segment with rolling settlement cycle. On the NSE, the stock closed with open unmet buying quantity of 2,73,857 shares, showing a lot of pent up buying pressure for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Aadhar Housing Finance IPO on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 15th May 2024. On Day-1 of listing, Aadhar Housing Finance Ltd touched a high of ₹343.70 per share on the NSE and a low of ₹292 per share. The premium to the listing price sustained through most part of the day. For the day, on the NSE, the upper circuit price was ₹346.50 per share while the lower circuit price was ₹292 per share. During the day, the high price of the day at ₹343.70 was marginally lower than the upper band price of ₹346.50 per share while the low price of the day at ₹292 per share was slightly above the lower band price for the day at ₹283.50 per share.

In fact, the stock did show a tendency to move well above the listing price and well below the listing price too. However, on the NSE, the stock stopped short of the upper circuit on the upside and also short of the lower circuit on the downside. On Day-1 of listing, the Aadhar Housing Finance Ltd stock traded a total of 714.01 lakh shares on NSE amounting to value of ₹2,312.46 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers for a better part of the trading day. The stock closed the day with pending buy orders of 2,73,857 shares on the NSE, showing pent-up buying.

Price volume story of Aadhar Housing Finance IPO on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 15th May 2024. On Day-1 of listing, Aadhar Housing Finance Ltd touched a high of ₹343.20 per share on the BSE and a low of ₹293.35 per share. The premium to the listing price sustained through better part of the day. For the day, on the BSE, the upper circuit price was ₹345.70 per share while the lower circuit price was ₹282.90 per share. During the day, the high price of the day at ₹343.20 was marginally lower than the upper band price of ₹345.70 per share while the low price of the day at ₹293.35 per share was slightly above the lower band price for the day at ₹282.90 per share.

In fact, the stock did show a tendency to move well above the listing price and well below the listing price too. However, on the BSE, the stock stopped short of the upper circuit on the upside and also short of the lower circuit on the downside. On Day-1 of listing, the Aadhar Housing Finance Ltd stock traded a total of 32.97 lakh shares on BSE amounting to value of ₹106.65 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers for a better part of the trading day. The stock closed the day with pending buy orders of shares on the BSE, showing pent-up buying demand.

 Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some hints of offloading in the first half of the trading session. The sharp volatility in the Nifty and the Sensex did not really deter the stock of Aadhar Housing Finance Ltd from closing strong on both exchanges. That makes it a rather attractive stock after the strong listing on Wednesday and its ability to sustain gains on a tough trading day. On the NSE, out of the total 714.01 lakh shares traded during the first day of trading, the deliverable quantity represented 375.07 lakh shares or a deliverable percentage of 52.53% on the NSE. This is nearly at par with the median delivery percentage that IPOs see on the NSE on listing day.

Even on the BSE, out of the total 32.97 lakh shares of quantity traded, the delivery volumes stood at 13.83 lakh shares. In percentage terms, this translates into a delivery percentage of 41.94%. This is not only lower than the delivery percentage on the NSE but also lower than the median on the BSE, indicating that the delivery volumes were relatively lower on the counter on the BSE, and indicating a higher proportion of intraday volumes on the stock exchange. Being a normal rolling settlement stock, even on listing day, delivery and intraday trades are permitted on the counter.

At the close of Day-1 of listing, Aadhar Housing Finance Ltd had a market capitalization of ₹14,055.92 crore with free-float market cap of ₹2,248.95 crore. Aadhar Housing Finance Ltd shares have a par value of ₹10 per share. The ratio of market cap to issue size (a sign of market liquidity creation) was 4.69X. The company trades under the code (AADHARHFC) on the NSE, (544176) on the BSE and is held in the demat account under ISIN (INE883F01010).