India Shelter Finance Corporation Limited (ISFC), a leading provider of housing finance solutions in India, is poised to enter the public domain through an initial public offering (IPO). The company, known for its strong focus on affordable housing, aims to raise ₹1,200 crore through this IPO. This article delves into the intricacies of India Shelter Finance's IPO, providing a comprehensive overview for potential investors.
India Shelter Finance Corporation Limited, established in 1986, has emerged as a significant player in India's housing finance sector. The company caters primarily to individuals seeking home loans, focusing on affordable housing segments. ISFC boasts a strong network across India, with a presence in 21 states and union territories.
India Shelter Finance has exhibited a consistent track record of growth and profitability. In the fiscal year 2023, the company recorded a net profit of ₹259 crore, showcasing its financial resilience. The company's loan portfolio stood at ₹11,345 crore as of March 31, 2023, reflecting its strong market position.
The proposed IPO comprises a fresh issue of up to ₹800 crore and an offer for sale (OFS) of up to ₹400 crore. The IPO is scheduled to open on December 13, 2023, and close on December 15, 2023. The price band for the IPO has been set at ₹469 to ₹493 per share.
IPO Opening Date: December 13, 2023
IPO Closing Date: December 15, 2023
Listing Date: December 26, 2023
Promoter holding (pre and post IPO): 78.49% [pre-IPO holding]% 66.16% [post-IPO holding]%
Lot Size: 30 shares
IPO Price Band: ₹469 to ₹493 per share
Objectives of the Issue
India Shelter Finance intends to utilize the proceeds from the IPO to:
Expand its loan book: The company aims to utilize a significant portion of the proceeds to expand its loan book, particularly focusing on affordable housing segments, thereby contributing to the government's housing for all initiative.
Strengthen its capital base: The IPO will enable ISFC to enhance its capital adequacy ratio, further bolstering its financial stability and supporting future growth.
Technology upgrade: The company plans to invest in technology infrastructure and digital initiatives to improve operational efficiency and enhance customer experience.
Branch network expansion: ISFC aims to strengthen its geographical reach by expanding its branch network, particularly in underpenetrated markets.
Grey Market Premium (GMP)
The IPO grey market premium (GMP) for India Shelter Finance currently stands around ₹35 per share. This indicates that investors in the grey market are willing to pay ₹504 to ₹528 per share for the company's shares, suggesting positive investor sentiment towards the IPO.
India Shelter Finance's IPO presents an attractive opportunity for investors to gain exposure to a well-established housing finance company with a strong focus on affordable housing. The company's robust financial performance, experienced management team, and commitment to social impact through affordable housing initiatives position it well for future growth. However, investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in any IPO.
Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.