Incorporated in 2011, Jaipur based Aavas Financiers Limited is a company engaged in the business of providing retail, affordable housing finance to low and middle income self employed customers in semi-urban and rural areas in India. The company is registered with the NHB as an HFC.
As per ICRA Report, Aavas Financiers had the lowest GNPAs as of March 31, 2018 and the second highest growth rate of AUM for the last three financial years, among affordable housing finance with AUM between Rs 25 billion and Rs 20 billion.
As of 31 March 2018, a majority of the home loans that it disbursed were for single-unit properties, almost all of which were to be occupied by the borrowers themselves. In addition to home loans, it offers customers other mortgage loans including loans against property, which accounted for 22.44% of its Gross Loan Assets as of 31 March 2018. As of 31 March 2018, 60.40% of its Gross Loan Assets were from customers who belonged to the economically weaker section and low income group, earning less than Rs 50,000 per month and 34.76% of its Gross Loan Assets were from customers who were new to credit. The average sanctioned amount of its home loans and other mortgage loans was Rs 0.88 million and Rs 0.80 million, respectively.
Aavas Financiers has adopted a strategy of contiguous on-ground expansion across regions and conducted operations through 165 branches spread across 92 districts in eight states as of 31 March 2018, with significant presence in the four states of Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. As of 31 March 2018, it employed 1,862 personnel and had 52,788 loan accounts including securitized and assigned cases.
Strengths of the Company-
1. Strong distribution network with deep penetration serving underserved and unreached markets in rural and semi –urban areas.
2. Superior asset quality achieved through robust credit assessment and risk management framework,
3. Effective use of technology and human expertise to build a scalable and efficient operating model,
4. Well experienced management team.
Objects of the Issue
The objects of the issue are to achieve the benefits of listing on stock exchanges and to carry out the OFS by the promoters. In addition, the company proposes to utilize the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements.
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Read https://bit.ly/2DupUJf to know further