India Shelter Finance debuts on the market at Rs 620, marking a 25% premium above the IPO price.

India Shelter Finance debuts on the market at Rs 620, marking a 25% premium above the IPO price.

20 Dec, 2023

India Shelter Finance debuts on the market at Rs 620, marking a 25% premium above the IPO price.

 

On December 20, India Shelter Finance Corporation marked a stellar entry into the trading arena, with its shares opening at Rs 620 on the National Stock Exchange (NSE) and Rs 612.70 on the BSE. This impressive debut showcased a substantial 25.7% premium over the issue price of Rs 493.

The company's public offering of Rs 1,200 crore garnered tremendous attention, witnessing an overwhelming subscription of 36.71 times. The demand surged, reflecting bids for 65.75 crore shares against an issue size of 1.79 crore. Notably, retail investors showed strong interest with a subscription rate of 9.95 times, while non-institutional investors (NII) and qualified institutional buyers (QIB) subscribed at 28.51 times and 89.7 times, respectively.

Preceding the IPO, India Shelter Finance Corporation secured Rs 360 crore from anchor investors, attracting participation from 38 investors, including esteemed names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT, and Steinberg India.

The corporation, dedicated to affordable housing finance, primarily caters to the self-employed within low and middle-income groups, particularly focusing on first-time home loan seekers in tier-2 and 3 cities. With a network spanning 203 branches across 15 states, it holds a prominent presence in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.

In the financial year 2023, the housing finance company exhibited commendable growth, recording a 21% increase in profits, reaching Rs 155.3 crore, while its revenue surged by 30.5% to Rs 584.5 crore. Demonstrating a conservative approach, the company maintains a loan-to-value ratio of 55.1% in the home loan segment and 45.3% in the LAP (loan against property) segment. Additionally, its assets under management (AUM) soared by 41.8% year-on-year, reaching Rs 4,359.4 crore in FY23.


 


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