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The company was incorporated as ‘Au Housing Finance Private Limited’ on February 23, 2011, as a private limited company under the Companies Act 1956, with a certificate of incorporation granted by the Registrar of Companies, Rajasthan at Jaipur (RoC). Pursuant to a special resolution passed by its shareholders on January 10, 2013, the company was converted into a public limited company and its name was changed to ‘AU Housing Finance Limited’. Consequently, the RoC certified the change of name upon conversion to a public limited company on January 11, 2013. Thereafter, pursuant to a special resolution passed by its shareholders on February 23, 2017, the name of the company was changed to ‘Aavas Financiers Limited’ and consequently, a fresh certificate of incorporation dated March 29, 2017 was issued by the RoC.

The company secures financing from a variety of sources including term loans and working capital facilities; proceeds from loans assigned and securitized; proceeds from the issuance of non-convertible debentures (NCDs); refinancing from the National Housing Bank (NHB); and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic, foreign and multi-lateral financial institutions to meet its capital requirements.

The company is primarily engaged in the business of providing housing loan to customers belonging to low and middle income segment in semi-urban and rural areas. These are credit worthy customers who may or may not have the income proof documents like IT return, salary slip and hence are financially excluded by other large housing finance companies and banks. AAVAS uses unique appraisal methodology to assess these customers individually. The financing solution need to be appropriated and suitable to them.

Business area of the company

The company is a retail, affordable housing finance company, primarily serving low and middle income self-employed customers in semi-urban and rural areas in India. A majority of its customers have limited access to formal banking credit. The company offers customers home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.

Company	Market Price	MCAP(Cr)	P/B	P/E	EPS	ROE
AAVAS	1391.2(1.7%)	11,004	3.4	25.6	9.6	13.8
HUDCO	57.1(2.1%)	11,437	0.7	6.7	9.5	12.4
PNBHOUSING	483.15(0.5%)	12,531	0.9	11.9	7.8	9.0
CANFINHOME	690.3(0.1%)	9,191	2.5	14.8	7.2	16.6
APTUS	259.45(-1.2%)	12,935	4.2	30.5	13.6	15.1
HOMEFIRST	710(1.9%)	6,260	3.5	27.4	10.3	13.6
IBULHSGFIN	115.4(-1.7%)	5,445	0.3	6.6	9.6	7.3
REPCOHOME	256.8(10.4%)	1,607	0.6	5.4	10.5	16.2
LICHSGFIN	379.55(-0.1%)	20,867	0.8	7.2	9.1	13.9
GICHSGFIN	170.45(2.0%)	915	0.5	4.3	7.9	11.5
RHFL	2.75(-1.8%)	134	-1.6	0.0	-7.8	-218.6
HDFC	2693.35(0.1%)	4,96,753	3.7	30.6	11.2	17.5

Peer Comparison