Aadhar Housing Finance shares extend listing day gains, surge 10%

Shares of Aadhar Housing Finance extended the listing day gains and surged another 10 percent to scale a new record high of Rs 362.35 on May 16.

The stock made a tepid debut on the exchanges, listing at Rs 314 per share on May 15, almost at par with its issue price of Rs 315 per share. The listing was also underwhelming for investors as it was below expectations.

Prashanth Tapse, Senior VP Research at Mehta Equities anticipated a decent debut for the stock on the back of its reasonable asset quality and healthy return ratios.

Nonetheless, follow-up buying in the counter lifted the stock to close around 5 percent higher at the end of its listing day. The buying also extended to the second session, lifting the stock higher for another day.

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Meanwhile, Tapse also maintains an optimistic view of Aadhar Housing Finance. His positive outlook stems from the anticipation of sustained growth in the affordable low-income housing sector, propelled by government initiatives like “Housing for All” and granting infrastructure status to affordable housing. He advised investors to ‘Hold’ for a long-term perspective.

Aadhar Housing‘s Rs 3,000-crore initial public offer was subscribed 26.76 times. Qualified institutional buyers (QIBs) led from the front as they subscribed the portion allotted 76.4 times. Non-institutional investors subscribed their portion 17.3 times while retail investors did it 2.5 times.

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