Aadhar Housing Finance , a leading player in the affordable housing finance sector, has reported strong financial performance for the first quarter, demonstrating significant growth across key metrics.

Strong AUM Growth and Disbursements

The company achieved an Assets Under Management (AUM) of Rs 26,524.00 crore, marking an impressive 22% year-on-year growth. This substantial increase in AUM underscores Aadhar Housing Finance's expanding market presence and growing customer base in the affordable housing segment.

Disbursements for the quarter stood at Rs 1,979.00 crore, reflecting a robust 32% year-on-year increase. This growth in disbursements indicates strong demand for affordable housing finance and the company's ability to capitalize on market opportunities.

Profit Growth and Asset Quality

Aadhar Housing Finance reported a 19% increase in Profit After Tax (PAT), which rose to Rs 237.00 crore compared to Rs 200.00 crore in the same quarter of the previous year. This growth in profitability demonstrates the company's operational efficiency and effective cost management.

The company maintained a healthy asset quality, with gross non-performing assets (GNPA) remaining stable at 1.34%. The collection efficiency remained strong at over 98%, reflecting the company's robust risk management practices and the quality of its loan portfolio.

Portfolio Composition and Expansion

Home loans constitute 73% of the company's AUM, while micro-loans against property account for the remaining 27%. The portfolio remains well-secured with an average loan-to-value ratio of 59%. The salaried segment represents 56% of the portfolio, with an average ticket size of Rs 10.00 lakh.

Aadhar Housing Finance has expanded its presence to 591 branches across 22 states, serving over 3 lakh customers. During the quarter, the company added 11 new branches, including its first branch in Assam, marking its entry into the 22nd state.

Strategic Focus on Urban and Emerging Markets

The company has implemented a new strategy focusing on urban and emerging markets. Under this approach, Aadhar Housing Finance has classified approximately 130 branches in the top 15 cities as urban, with the remaining branches categorized as emerging. This strategy aims to drive growth in underserved areas while maintaining a strong presence in established urban markets.

Improved Credit Rating and Financial Metrics

CARE Ratings upgraded the company's rating to AA+ from AA, reflecting its consistent loan book growth, robust capital adequacy, and strong asset quality. The cost of funds stood at 8.00% with an exit portfolio yield of 13.80% and a spread of 5.80%.

Management Commentary

Rishi Anand, Managing Director & CEO of Aadhar Housing Finance, commented on the results: "We are pleased to begin the fiscal year on a very strong and promising note. This quarter has been a continuation of our disciplined execution and strategic focus. Our AUM has reached an all-time high, reflecting the trust of our customers, the dedication of our teams, and the strength of our business fundamentals."

Outlook

Aadhar Housing Finance maintains its growth guidance of 20-22% for AUM and 18-20% for disbursements. The company remains optimistic about the affordable housing finance sector, supported by government initiatives, urbanization trends, and increasing demand from first-time homebuyers.

With its strong financial performance, expanding reach, and strategic focus on emerging markets, Aadhar Housing Finance is well-positioned to capitalize on the growing opportunities in the affordable housing finance segment.

Aadhar Housing Finance Limited , a prominent player in India's housing finance sector, is set to undergo a significant ownership change. The company's promoter, BCP Topco VII Pte. Ltd., has entered into a share purchase agreement with AXDI LDII SPV 1 LTD to sell a substantial stake in the company.

Key Details of the Transaction

• Sale Agreement: BCP Topco VII Pte. Ltd. has agreed to sell 44,139,236 equity shares of Aadhar Housing Finance to AXDI LDII SPV 1 LTD.
• Share Price: The transaction is valued at Rs 425.00 per share.
• Date of Agreement: The share purchase agreement was signed on July 29.

Regulatory Approvals Required

The completion of this transaction is subject to several regulatory approvals, including:

1. Reserve Bank of India
2. Competition Commission of India
3. National Housing Bank
4. Indian Bank

Impact on Ownership Structure

Upon completion of the transaction:

• AXDI LDII SPV 1 LTD will be classified as a public shareholder of Aadhar Housing Finance.
• The buyer is investing as a financial investor with no existing relationship to the company.

Transaction Timeline and Governance

• The agreement will automatically terminate if the closing does not occur within 15 months from the date of signing.
• The share purchase agreement is governed by English law.

Management and Control

It's important to note that this transaction will not impact the management or control of Aadhar Housing Finance Limited. The company's operations are expected to continue under the current leadership structure.

Annual General Meeting Highlights

Coinciding with these developments, Aadhar Housing Finance held its 35th Annual General Meeting (AGM) on July 29. Key points from the AGM include:

• The meeting was conducted through video conferencing due to ongoing health and safety considerations.
• All proposed resolutions were passed with the requisite majority, including:
  • Reappointment of Mr. Prateek Roongta as a Non-Executive Director
  • Appointment of Mr. Raj Vikash Verma as an Independent Director for a five-year term
• The company also received shareholder approval for increased borrowing powers and the issuance of debentures.

Market Response

Following these announcements, there was a significant increase in the trading volume of Aadhar Housing Finance's shares. The company has assured stakeholders that it remains compliant with all regulatory disclosure requirements and will continue to provide updates on any material developments.

As Aadhar Housing Finance navigates this ownership transition, the focus remains on maintaining its strong position in the housing finance market while ensuring transparency and compliance with all regulatory standards.