(Bloomberg) -- Aadhar Housing Finance Ltd. advanced as much as 9% on its first day of trade in India after an initial public offering of 30 billion rupees ($359 million), the country’s second-largest this year. 

Blackstone-backed mortgage lender’s shares climbed to as high as 343.70 rupees on Wednesday, before closing at 329.45 rupees in Mumbai. They were sold at 315 rupees apiece in an IPO that lured bids nearly 26 times higher than the shares on offer. 

The debut adds to a list of recent pops in India, one of the busiest markets for new share sales in Asia Pacific this year as the nation’s stocks tested a series of record highs. A flurry of small deals that surged after their debuts has drawn regulators’ scrutiny since March over potential froth and irregularities.

Companies that started trading on Indian exchanges after IPOs of at least $100 million over the past year jumped 33% in their inaugural session, according to data compiled by Bloomberg. Telecom service provider Bharti Hexacom Ltd., the country’s largest IPO in 2024, is up about 60% since its debut last month.  

Aadhar Housing and holders including Blackstone Group company BCP Topco VII Pte. sold shares in the IPO. The financial services company will use the proceeds for future capital requirements toward onward lending, according to the prospectus.

The company benefits from its “strong parentage and expertise and has access to funding at competitive rates,” said Pradeep Agrawal, an analyst with Systematix Shares & Stocks India Ltd. India’s favorable demographics and low penetration of mortgage business means a huge growth opportunity for companies such as Aadhar, he said.

(Updates stock prices.)

©2024 Bloomberg L.P.