India Shelter Finance Corporation Ltd had a positive debut on Dalal Street, listing with a premium of over 25% to the issue price. The shares were listed at ₹620 on NSE, reflecting a premium of 25.76% compared to the issue price of ₹493 per share. However, shortly after the listing, the share price experienced a decline of more than 8% as some investors opted to book profits.
Analysts recommend that investors who participated in the India Shelter Finance IPO consider booking partial profits post-listing while retaining the remaining shares for the long term.
Mahesh Ojha, AVP – Research & Business Development at Hensex Securities Pvt Ltd, highlighted India Shelter Finance’s impressive debut, emphasizing its position as one of the fastest-growing housing finance companies in India.
The company boasts an extensive and diversified Phygital distribution network, with a significant presence in Tier II and Tier III cities. Ojha also noted its in-house origination model, technology-driven approach, and a diversified financing profile with a proven track record of reducing financing costs.
Investors are advised to book at least 50% of profits on the listing day itself, according to Ojha, while the remaining portion can be held for long-term investment.
On BSE, India Shelter Finance share price started trading at a premium of 24.28%, opening at ₹612.70 apiece. As of 12:10, the shares were trading 8.27% lower at ₹562.00 apiece on BSE and 9.18% lower at ₹563.10 apiece on NSE.
The India Shelter Finance IPO, which opened for subscription on December 15 and closed on December 18, garnered strong demand from investors, with an overall subscription of 38.59 times.
The IPO comprised a fresh issue of 1.62 crore equity shares, aggregating to ₹800 crore, and an offer for sale (OFS) of 81 lakh shares, aggregating to ₹400 crore. The issue price was set in the range of ₹469 to ₹493 per share, and the lot size was 30 shares.
India Shelter Finance Corporation Ltd focuses on retail-oriented affordable housing finance, particularly in Tier-2, Tier-3, and rural regions. As of September 30, 2023, the company had a network of 203 branches across 15 states. It has an AUM of ₹5,181 crore in H1FY24, indicating robust growth in its financial position.
The company’s financials for FY23 showed strong performance, with net interest income at ₹293 crore, reflecting a 32% CAGR between FY21-23. The net profit increased from ₹87 crore to ₹155 crore during the same period, with a 33% CAGR. Asset quality also improved, as indicated by the reduction in gross and net NPA ratios.
