Aadhar Housing Finance Ltd IPO

HFC focused on the low income housing segment (ticket size less than Rs.1.5 million) in India with the highest AUM and net worth among our analyzed peers in Fiscal 2021, Fiscal 2022, Fiscal 2023 and nine months ended December 31, 2022 and December 31, 2023.

Seasoned business model with strong resilience through business cycles.

Extensive branch and sales office network, geographical penetration and sales channels which contribute significantly to loan sourcing and servicing.

Robust, comprehensive systems and processes for underwriting, collections and monitoring asset quality.

Access to diversified and cost-effective long-term financing with a disciplined approach to asset liability and liquidity management.

Social objectives are one of the core components of our business model.

Experienced, cycle-tested and professional management team with strong corporate governance.

The company Erstwhile Promoters are subject to ongoing regulatory investigations by enforcement agencies including the Enforcement Directorate and the outcome of such investigations may adversely impact the company and the Equity Shares held by its Promoter, BCP Topco and the market price of the Equity Shares of the Company.

The company is party to certain legal proceedings and any adverse outcome in these or other proceedings may adversely affect its business.

The company depends on the accuracy and completeness of information provided by its potential borrowers and third-party service providers. Its reliance on any misleading information given by potential borrowers may affect its judgment of credit worthiness of potential borrowers, and the value of and title to the collateral, which may affect its business, results of operations, cash flows and financial condition.

The company has had negative net cash flows in the past and may continue to have negative cash flows in the future.

Any increase in the levels of non-performing assets in its AUM would adversely affect the companys business, results of operations, cash flows and financial condition.

If the company fails to identify, monitor and manage risks and effectively implement its risk management policies, it could have a material adverse effect on the companys business, financial condition, results of operations and cash flows.

The company is vulnerable to the volatility in interest rates and its may faces interest rate and maturity mismatches between the companys assets and liabilities in the future which may cause liquidity issues.

Its indebtedness and conditions and restrictions imposed by the company financing arrangements could adversely affect its ability to conduct the companys business and operations.

The company is required to comply with regulations and guidelines issued by regulatory authorities in India, including the NHB and RBI, which may increase its compliance costs, divert the attention of the company management and subject it to penalties.

The company assign a portion of its loan assets through direct assignments and through a co-lending arrangement to banks and other institutions. Any deterioration in the performance of any pool of receivables assigned to banks and other institutions or any decline in demand for such assignment of loan assets may adversely impact its financial performance and/or cash flows.