Aptus share: Should you buy or hold after muted listing?

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Aptus Value Housing Finance shares made its debut at a discount of near 5.60 per cent against its issue price of ₹346 to ₹353. Despite positive momentum witnessed at Indian stock market today, shares of Aptus Value Housing Finance made a muted listing at ₹333 — down around ₹20 per equity share. According to stock market experts, the stock may further go down. They advised Aptus share holders to book loss at current levels and make fresh entry below ₹300 for 9 months target of ₹440 per stock levels.

Advising Aptus Value Housing share holders to hold the counter for long-term; Jyoti Roy, DVP- Equity Strategist at Angel Broking said, “On account of consistent strong financial performance, industry leading return ratios and good asset quality, Aptus shares are expected to perform well in the long-term. This listing at discounted price is due to the recent high volatility in the markets and we believe that once the volatility in the market is gone, there can be sharp upside movement in the stock as the company has got strong fundamentals.”

Standing in sync with Angel Broking expert’s views; Ravi Singhal, Vice Chairman at GCL Securities said, “The counter looks strong in long-term time horizon but the volatility in the market may continue for few more trade sessions and shares of Aptus Value Housing Finance may come below ₹300. So, my advice to the share holders of Aptus Value Housing Finance is to exit at current levels and re-enter when the stock comes below ₹300 for the 9 months target of ₹440.” However, Ravi Singhal of GCL Security strictly advised investors to maintain stop loss at ₹270 while taking fresh position in the counter.

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Aptus Value Housing makes weak stock market listing; stock opens at discount to IPO price

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Aptus Value Housing shares list at discount to IPO price. (Image: REUTERS)

Aptus Value Housing Finance shares made a muted listing on the stock exchanges today, continuing the recent trend of discounted listing on Dalal Street. Shares of Aptus Value opened for trade at Rs 329.95 per share down 6.53% or Rs 23 apiece from the upper end of the IPO price band of Rs 353 per share. The stock opened with losses despite the positive momentum seen in domestic benchmark indices. The retail-focused housing finance company had entered primary markets to raise Rs 2,780 crore through the IPO earlier this month. Of the total issue size, Rs 500 crore was a fresh issue of equity shares while the remaining was an OFS by existing investors. Aptus Value Housing serves low and middle income self-employed rural and semi-urban customers. The company had a market capitalization of Rs 16,351 crore on listing.

Check live price: Aptus Value Housing Finance

The IPO of Aptus Value Housing Finance was oversubscribed by all pockets of investors. Half of the entire IPO was reserved for Qualified Institutional Buyers (QIB) who subscribed their portion 32.41 times. Retail investors had 35% of the IPO reserved for themselves and subscribed to the issue 1.35 times. Non-Institutional Investors (NII) bid for the IPO 33.91 times the portion reserved for them.

Aptus Value Housing Finance provides small loans for the purchase and self-construction of residential property, home improvement and extension loans. The company offers no loans of more than Rs 25 lakh. Over financial year 2019 and 2021, Aptus Value Hosuing’s NII/operating profit/PAT grew at a CAGR of 43.9%/ 51.0% / 54.7% to Rs 430.1 crore / Rs 350.9 crore/ Rs 266.9 crore, respectively. In the previous financial year, its calculated NIM stood at 10.5% with an average yield at 15.5%, said analysts at Ventura Securities. The brokerage firm valued the IPO at the upper end of the price band at 8.6x FY21 P/BV.

Analysts at Marwadi Financial Services had given a ‘Subscribe’ rating to the issue, saying that the company has a presence in large underpenetrated markets with strong growth potential and is available at a reasonable valuation as compared to its peers. “Considering the FY-21 adjusted BVPS of Rs 50.03 on post-issue basis, the company is going to list at a P/B of 7.06 with a market cap of Rs 1,74,940 mn, while its peer namely Aavas Financiers is trading at a P/B of 8.47,” they added.

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New Delhi: Aptus Value Housing Finance IPO Listing date is here. Investors are looking forward to Aptus Value Housing Finance IPO Listing on share market – BSE and NSE.Also Read - Realme 8i, Realme 8s 5G to Launch on 9 September in India: Check Expected Price, Full Specifications, Camera Features

Aptus Value Housing Finance IPO Share Price Online Check

If you want to check Aptus Value Housing Finance IPO Listing and share price, go to https://www.bseindia.com/stock-share-price/aptus-value-housing-finance-india-ltd/aptus/543335/ Also Read - Taliban Forces Say They Took Control of Panjshir, Last Holdout Afghan Province

Aptus Value Housing Finance IPO