India Shelter Finance Corporation Limited is set to launch its Initial Public Offering (IPO), a book-built issue aiming to raise Rs 1,200.00 crores. The IPO comprises a fresh issue of 1.62 crore shares, amounting to Rs 800.00 crores, and an offer for sale of 0.81 crore shares, totaling Rs 400.00 crores.
Scheduled to open for subscription on December 13, 2023, and close on December 15, 2023, the India Shelter Finance IPO is anticipated to finalize allotments by Monday, December 18, 2023. The listing is tentatively scheduled for December 20, 2023, on both BSE and NSE.
The price band for the IPO is fixed at ₹469 to ₹493 per share, with a minimum lot size of 30 shares. Retail investors are required to invest a minimum of ₹14,790. The issue size consists of 24,340,771 shares, categorized as a fresh issue of 16,227,181 shares and an offer for sale of 8,113,590 shares.
ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited are the book running lead managers, and Kfin Technologies Limited is the registrar for the issue.
**India Shelter Finance IPO Details:**
– IPO Date: December 13, 2023, to December 15, 2023
– Listing Date: To be announced
– Face Value: ₹5 per share
– Price Band: ₹469 to ₹493 per share
– Lot Size: 30 Shares
– Total Issue Size: 24,340,771 shares (₹1,200.00 Cr)
– Fresh Issue: 16,227,181 shares (₹800.00 Cr)
– Offer for Sale: 8,113,590 shares (₹400.00 Cr)
**India Shelter Finance IPO Reservation:**
– QIB: Not more than 50.00% of the Net offer
– Retail: Not less than 35.00% of the Offer
– NII (HNI): Not less than 15.00% of the Offer
**India Shelter Finance IPO Anchor Investors Details:**
The IPO raised Rs 360.00 crores from anchor investors. The anchor bid date was December 12, 2023. The anchor lock-in period for 50% shares ends on January 30, 2024, and for the remaining shares, it ends on April 23, 2024.
**India Shelter Finance IPO Timeline (Tentative Schedule):**
– IPO Open Date: December 13, 2023
– IPO Close Date: December 15, 2023
– Basis of Allotment: December 18, 2023
– Initiation of Refunds: December 19, 2023
– Credit of Shares to Demat: December 19, 2023
– Listing Date: December 20, 2023
– Cut-off time for UPI mandate confirmation: 5 PM on December 15, 2023
**India Shelter Finance IPO Lot Size:**
Investors can bid for a minimum of 30 shares and in multiples thereof. Retail investors can apply for a minimum of 1 lot (30 shares) and a maximum of 13 lots (390 shares), with an investment range of ₹14,790 to ₹192,270.
**India Shelter Finance IPO Promoter Holding:**
The promoters of India Shelter Finance Corporation Limited include Anil Mehta, WestBridge Crossover Fund, LLC, and Aravali Investment Holdings. The shareholding pre-issue is 56.75%, and post-issue, it is expected to be 48.17%.
**About India Shelter Finance Corporation Limited:**
Incorporated in 1998, India Shelter Finance Corporation Limited, previously known as Satyaprakash Housing Finance India Limited, is engaged in the business of housing finance. The company provides loans for house construction, extension, renovation, and the purchase of new homes or plots. Additionally, the company offers loans against property (LAP).
As of November 30, 2023, India Shelter has disbursed over Rs. 5500 Crores in loans, aiding families in owning, extending, or improving their homes. The company operates in 15 states with 203 branches, focusing on a “phygital” model that combines physical customer service through a network of customer advisors and digitalization of credit and banking processes.
As of September 30, 2023, the company’s collection team consists of over 300 officers, and it has launched iServe, a dedicated customer service application for existing customers.
**India Shelter Finance Corporation Limited Financial Information (Restated Consolidated):**
The company has witnessed substantial growth, with assets increasing to ₹4,758.68 Crores and revenue reaching ₹398.58 Crores as of September 30, 2023. The financial indicators for the year ending March 31, 2023, show a 31.84% increase in revenue and a 20.94% rise in profit after tax (PAT).
**Key Performance Indicators (KPIs):**
– P/E (x): 27.77
– Post P/E (x): 24.58
– Market Cap (₹ Cr.): 5277.62
– ROE: 13.4%
– Debt/Equity: 2.12
– EPS (Rs): 17.47
– RoNW: 13.4%
**Objects of the Issue (India Shelter Finance IPO Objectives):**
The net proceeds from the issue will be utilized to meet future capital requirements for onward lending and for general corporate purposes.
**India Shelter Finance IPO Review:**
The company has established a niche in affordable housing finance, serving the middle and lower-middle class across 15 states with 203 branches. Steady growth in top and bottom lines has been observed, and the management is confident in maintaining these trends. Based on FY24 annualized earnings, the issue appears fully priced. Investors may consider a medium to long-term investment in this rising star.
Note: The information provided is for informational purposes only and should not be considered financial advice. Investors are advised to consult with a financial advisor before making any investment decisions.
