Aadhar Housing Finance, backed by Blackstone, is set to raise up to ₹6,000 crore in fresh borrowings during the financial year 2025. The funds will be sourced from banks, non-convertible debentures (NCDs), and refinancing institutions, according to an official from the housing finance company (HFC).
In the previous fiscal year, Aadhar Housing Finance secured ₹5,500 crore in borrowings. For FY25, the company aims to increase this amount to ₹6,000 crore, with 20% of the new funds expected to come from NCDs. The official noted that the cost of funds has stabilised, having risen from 7.1% in FY23 to 8% in FY24. Last month, Aadhar Housing Finance successfully raised ₹3,000 crore through an initial public offering (IPO). The IPO included an offer for sale (OFS) of ₹2,000 crore by the promoter BCP Topco VII Pte Ltd, a subsidiary of Blackstone Group, along with a fresh issuance of equity shares valued at ₹1,000 crore. Of the primary issue, ₹750 crore will be allocated for business expansion and operational needs, while ₹250 crore will be utilised for corporate purposes.
The HFC is planning to extend its footprint across four to five additional states, targeting smaller talukas and districts. The proceeds from the IPO will also be invested in enhancing technology and data science capabilities. Although the company is not pursuing any new acquisitions at this time, it remains open to acquiring high-quality portfolios. The Blackstone fund, which has invested in Aadhar Housing Finance, has a lifetime until 2030. The official does not foresee any immediate need for the private equity firm to divest further stake. As of 14th May, Blackstone holds a 76.48% stake in the company. In the current fiscal year, Aadhar Housing Finance plans to add 75 new branches and hire 500 new employees.
The company’s assets under management (AUM) are expected to grow by 20%-23% in FY25, up from ₹21,100 crore at the end of FY24. With a portfolio predominantly comprising secured assets, the HFC anticipates maintaining a gross non-performing asset (GNPA) ratio between 1.1% and 1.2% for FY25. This strategic borrowing initiative and expansion plan underscore Aadhar Housing Finance’s commitment to strengthening its market position and enhancing its service delivery, thereby contributing to the broader financial ecosystem.
