Aadhar Housing Finance Ltd - Stock Valuation and Financial Performance

The company was originally incorporated as ‘Vysya Bank Housing Finance Limited’ at Bengaluru, Karnataka as a public company under the Companies Act, 1956, pursuant to a certificate of incorporation dated November 26, 1990, issued by the Registrar of Companies, Karnataka at Bangalore (RoC) and commenced operations pursuant to a certificate for commencement of business dated November 27, 1990, issued by the RoC. Subsequently, the name of the company was changed to ‘DHFL Vysya Housing Finance Limited’ and a fresh certificate of incorporation dated October 15, 2003, was issued by the RoC. Separately, an entity named ‘Aadhar Housing Finance Private Limited’ (Pre-merger AHFPL) was incorporated as a private limited company under the Companies Act, 1956, at Mumbai, Maharashtra pursuant to a certificate of incorporation dated May 3, 2010, issued by the Registrar of Companies, Maharashtra at Mumbai, which commenced its operations in February 2011. Pre-merger AHFPL was later converted into a public company and consequently, its name was changed to ‘Aadhar Housing Finance Limited’, and a fresh certificate of incorporation dated September 3, 2013 was issued by the Registrar of Companies, Maharashtra at Mumbai. Pre-merger AHFPL was later merged into the company pursuant to a scheme of amalgamation approved by the National Company Law Tribunal, Bengaluru Bench at Bengaluru, vide its order dated October 27, 2017 (Scheme of Amalgamation). Pursuant to the Scheme of Amalgamation, the name of the company was changed to ‘Aadhar Housing Finance Limited’ and a fresh certificate of incorporation dated December 4, 2017, was issued by the RoC. 

Aadhar Housing Finance is a retail-focused HFC focused on the low income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans. It offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition. Its financial performance has remained consistent and resilient through various external events in the Indian economy. It has made social objectives one of the core objectives of its business model. It operates a financially inclusive, customer centric lending business and its business model contributes significantly to the economic uplift of its target customers by contributing to an improvement in their standard of living. In addition to its customer-facing social objectives, it has also implemented social objectives in aspects of its business. Its presence in urban and semi-urban locations across India provides a source of employment in these locations. 

The company has robust and comprehensive systems and processes for underwriting, collections and monitoring asset quality. These systems and processes are also technology enabled across its front office and back office with a view to ultimately digitize the entire life cycle of a loan from origination to closure. Loan applications from salaried-customers go through its regional processing unit (RPUs), increasing efficiency while those from self-employed customers, which require close understanding of the customer and their cash flows, are managed regionally. It also has an internally developed credit assessment model and have digitized monthly collections from customers to the extent possible to reduce processing and improve collection efficiency. It has migrated to a digital IT infrastructure with a view to reducing costs, carrying on real time analysis of customer data, improving its control and underwriting functions, while increasing customer reach and distribution capability. These measures will further improve its operational efficiency by improving processing times and productivity. It secures financing from a variety of sources including term loans and cash credit/ working capital facilities, proceeds from loans assigned, proceeds from the issuance of NCDs, refinancing from the NHB and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic, development financial institutions to meet its capital requirements.

Business area of the company

Aadhar Housing Finance (Aadhar) is one of the largest low-income housing finance companies in India servicing the home financing needs of the low income sections of the society. The company endeavours to empower underserved millions to own their first homes. 

Awards and accreditations

2018:

• The company was awarded “Affordable Home Loan Provider of the Year 2017” at the Outlook Money Awards.
• The company was awarded “Housing Finance Company of the Year (Medium and Small)” and “Marketing Campaign of the Year” by the ABP News.

2019:

• The company was awarded “Finnoviti 2019 Award” by the Banking Frontiers.
• The company was awarded “Prestigious Brands of India 2019” by the Brand Advertising Research & Consulting Private Limited and ERTC Media Private Limited.
• The company was awarded “Most Promising Brand for Housing Finance” by the ET Now.
• The company was awarded “Dream Companies to Work for” (Financial Services) and “Dream Employer of the Year” by the ET Now.
• The company was included in “India’s Leading BFSI Companies 2019” list published by the Dun & Bradstreet Information Services.
• The company was awarded “Pradhan Mantri Awas Yojana Empowering India Award 2019” by the Ministry of Housing and Affairs, Government of India.
• The company was awarded “The Affordable Home Loan Provider of the Year 2018” at the Outlook Money Awards.
• The company was awarded “Best BFSI Brands 2019” by the Economic Times.
• The company’s Annual Report was awarded a “Third Prize” by the Public Relations Society of India.
• The company was awarded a Silver Award in “Affordable Housing Category- Home Loan (Affordable) Provider of the Year” at the Outlook Money Awards.

2020:

• The company’s Managing Director and Chief Executive Officer was awarded “NBFC Leadership Award 2020” by the Banking and Finance Post.
• The company’s Managing Director and Chief Executive Officer was recognized as one of the “101 Top Most Influential BFSI Leaders” by the ET Now.
• The company was certified as “Great Place to Work” by the Great Place to Work Institute, India.

2021:

• The company was recognized as one of the “Best Brands of 2021” by The Economic Times.
• The company was awarded the first prize in “Best Cyber Security Initiative” and “Best API Initiative”, and second prize in “Best Cloud Initiative”, “Best Omnichannel CX Initiative” and “Esteemed Award (IT & Digital Group) at the ‘DNA-Distinguished NBFC Awards 2021’organised by Banking Frontiers.
• The company has been awarded “Best Employer 2021-22”, at the Maharashtra State Best Employer Brand Awards, 2021 hosted by World HRD Congress.

2022:

• The company was recognized as one of the “Best Brands of 2022” by The Economic Times.
• The company was awarded with the “Annual HR Excellence Award 2022”, held by the Associated Chambers of Commerce and Industry of India (“ASSOCHAM”).
• The company was awarded Best Digital Transformation Initiative – Housing Finance Company at the NBFC & FinTech Excellence Awards 2022.

2023:

• The company was recognized as India’s Leading Housing Finance NBFC (Mid) at the Dun & Bradstreet BFSI & Fintech Summit 2023.
• The company was certified as “Great Place to Work” by the Great Place to Work Institute, India.
• The company was awarded with the “Resilient Organization of the Year” at India Credit Risk Management Summit & Awards 2023 by Synnex Group.
• The company was awarded “Best Risk and Cyber Security Initiatives” in Mid-Layer NBFCs at the 18th Annual Summit & Awards for Banking & Financial Sector Lending by the ASSOCHAM.
• The company was awarded with “Excellence in Housing Finance” award in the Western Region during the 12th Real Estate Summit by the ASSOCHAM.
• The company was awarded the ‘Best Initiative in Technology Orientation [NBFC/HFC/MFI]’ at the ETBFSI Excellence Awards 2023.

2024:

• The company has been selected as the gold winner in the category of “Best Performance Marketing Campaign of the Year” and silver winner in the category of “Integrated Marketing Communications Campaign of the Year” at ASSOCHAM Branding & Marketing Summit-cum-Excellence Awards.
• The company was awarded “Best NBFC - Housing Finance” at MSME Banking Excellence Awards – 2023, organised by Chamber of Indian Micro Small & Medium Enterprises.

Major events

• 1991: Incorporation of the Company.
• 2018: Merger of Pre-merger AHFPL with the Company. Pursuant to the Scheme of Amalgamation, the name of the Company was changed to Aadhar Housing Finance Limited.
• 2018: Disbursed loans worth Rs 6 billion in March 2018.
• 2019: The company’s AUM crossed Rs 100 billion.
• 2019: Raised approximately Rs 7 billion through a maiden public offering of NCDs.
• 2020: BCP Topco, the company’s Promoter, infused Rs 14.4 billion in the company.
• 2020: The company’s customer base crossed 150,000.
• 2021: The company’s AUM crossed Rs 120 billion.
• 2022: The company’s customer base crossed 200,000 customers.
• 2023: The company’s AUM crossed Rs 170 billion.
• 2023: The company’s branch network has crossed 470 branches.