The initial public offering (IPO) of India Shelter Finance Corporation (Indian Shelter) will open for bidding on Wednesday, December 13, 2023.
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The company will be selling its shares in the price band of Rs 469-493 apiece with a lot size of 30 equity shares. The three-day bidding for the offer shall conclude on Friday, December 15.
Incorporated in 1998, India Shelter Finance Corporation is a housing finance player, which provides loans for house construction, extension, renovation and purchase of new homes or plots. The company also offers loans against property (LAP). The company offers loan amounts between Rs 5 lakh to Rs 50 lakhs for tenure up to 20 years.
Indian Shelter is looking to raise Rs 1,200 crore via its IPO, which includes a fresh share sale of Rs 1,200 crore while existing investors, namely- Catalyst Trusteeship, Madison India Opportunities IV, MIO Starrock and Nexus Ventures- will offload shares worth Rs 400 crore via offer-for sale (OFS). Anchor book will open on Tuesday, December 12.
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India Shelter had disbursed over Rs 5,500 crore in loans, helping families own, extend, or improve their homes as of November 30 2023. The company has a network of 183 branches spread across 15 states with a presence in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka and Gujarat. The company had 183 branches as of March 31, 2023.
The company intends to utilize the net proceeds from the issue towards meeting future capital requirements towards onward lending; and general corporate purposes. For the year ended on March 31, 2023, Indian Shelter reported a net profit of Rs 155.34 crore with a revenue of 606.23 crore.
The company has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation in the offer. Retail investors will have 35 per cent shares reserved for them during the bidding.
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ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company and Ambit are the book running lead managers of the India Shelter IPO, while Kfin Technologies Limited is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, December 20.
