India Shelter Finance Corporation’s IPO aims to raise Rs.1,800 crores. This offer has two components- 1. Fresh Issue amounting to Rs.1,000 crores and 2.Offer for Sale. The Fresh Issue amounting to Rs.800 crores. The funds raised will be used to meet the future capital requirement of the company.
India Shelter Finance Corporation Ltd IPO – Important Details
| India Shelter Finance Corporation IPO Date | December 13, 2023 to December 15, 2023 |
| India Shelter Finance Corporation IPO Listing Date | December 20, 2023 |
| India Shelter Finance Corporation IPO Price | INR 469 to 493 per share |
| India Shelter Finance Corporation IPO Lot Size | 30 Shares |
| India Shelter Finance Corporation IPO Total Issue Size | ₹1800 Crores |
| India Shelter Finance Corporation IPO Basis of Allotment | December 18, 2023 |
| India Shelter Finance Corporation IPO Initiation of Refunds | December 19, 2023 |
| India Shelter Finance Corporation IPO Credit of Shares to Demat | December 19, 2023 |
| India Shelter Finance Corporation IPO Issue Type | Book Built Issue IPO |
| India Shelter Finance Corporation IPO Listing At | BSE, NSE |
India Shelter Finance Corporation Ltd IPO – Company Profile
Established in 1998, India Shelter Finance Corporation was co-founded by Anil Mehta, WestBridge Crossover Fund, LLC and Aravali Investment Holdings.
The company’s primarily engaged in providing affordable housing finance. Over the years, the company has built a scalable technology infrastructure and an extensive distribution network of 183 branches spread across 15 states which covers 94% of the affordable housing finance market in India as on 31st March,2023. The company has achieved growth in AUM of 40.8% between financial years 2021-23.
In the year 2023, the company received many awards and recognitions like ‘Best SDG Impact’ award, ‘Best House Financier of the Year’, ‘Best Customer Centric IT Implementation of the Year’, ‘Best Brand Building Campaign’ and many more.
India Shelter Finance Corp Ltd IPO – Fundamental Analysis
Revenue Growth:
India Shelter Finance Corp Ltd has consistently grown its revenue, reaching ₹5,029.46 million in 2023 from ₹2,745.72 million in 2021, indicating a strong upward sales trend.
Profitability:
The company’s profitability has shown substantial improvement, with a profit after tax of ₹1,553.42 million in 2023 compared to ₹873.89 million in 2021, reflecting increased operational efficiency.
Return on Net Worth (RoNW):
RoNW has steadily increased from 9.8% in 2021 to 13.4% in 2023, indicating improved profitability relative to shareholders’ equity.
Earnings Per Share (EPS):
Diluted EPS has risen from ₹9.93 in 2021 to ₹17.47 in 2023, signaling higher earnings per share for investors.
Net Asset Value (NAV) per Equity Share:
NAV per equity share has consistently grown, reaching ₹141.38 in 2023, indicating improved asset value per share.
Asset and Liability Management:
The company’s total assets have seen substantial growth, reaching ₹42,955.91 million in 2023, while total liabilities have also increased, reflecting expansion and higher financial obligations.
Summary:
India Shelter Finance Corp Ltd financials exhibit robust revenue growth, improved profitability, and enhanced returns for shareholders. However, investors should carefully evaluate the increasing liabilities and the sustainability of this growth before considering an investment in the IPO.
India Shelter Finance Corp Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 2,745.72 | 3,736.16 | 5,029.46 |
| Equity (₹ in Million) | 9,372.69 | 10,761.27 | 12,405.28 |
| Expenses (₹ in Million) | 2,098.42 | 2,929.05 | 4,042.79 |
| Profit and Loss After Tax (₹ in Million) | 873.89 | 1,284.47 | 1,553.42 |
| RoNW (%) | 9.8% | 12.8% | 13.4% |
| Diluted EPS only (₹) | 9.93 | 14.63 | 17.47 |
| NAV per Equity Share (₹) | 109.04 | 123.11 | 141.38 |
| Total Assets (in million) | 24,626.40 | 32,212.21 | 42,955.91 |
| Total Liabilities (in million) | 15,253.71 | 21,450.94 | 30,550.63 |
India Shelter Finance Corporation Ltd IPO Peer Comparison
India Shelter Finance Corp Ltd reports a total income of ₹5,845.30 million, an EPS of ₹17.75, and a RoNW of 13.4%. Aavas Financiers Ltd holds the highest RoNW at 14.1%, while Home First Finance Company India Ltd exhibits a higher EPS and P/E ratio.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| India Shelter Finance Corporation Limited | 5,845.30 | 5 | NA | 17.75 | 17.47 | 13.4 | 141.38 |
| Aptus Value Housing Finance India Limited | 10,933.57 | 2 | 26.1 | 10.11 | 10.08 | 16.1 | 67.05 |
| Aavas Financiers Limited | 16,087.64 | 10 | 28.7 | 54.38 | 54.26 | 14.1 | 413.58 |
| Home First Finance Company India Limited | 7,909.85 | 2 | 33.1 | 26.01 | 25.20 | 13.5 | 206.48 |
India Shelter Finance Corporation Ltd IPO Objective
India Shelter Finance Corporation Ltd IPO seeks to raise Rs. 800 crores to meet regulatory capital adequacy ratios for housing finance. The remaining funds will support general corporate purposes, including technology advancement, expansion, and debt repayment.
- Meet capital requirement: As the company is a housing finance company in India registered with the National Housing Bank, it has to meet the statutory requirement of minimum capital adequacy ratio. The company plans to utilize Rs.800 crores from the raised funds to meet the future capital requirement towards onward lending.
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion, repayment of indebtedness from time to time, meeting ongoing working capital requirements.
India Shelter Finance Corp Ltd IPO Risks And Challenges
India Shelter Finance Corp Ltd faces risks including high business concentration in three states, customer payment defaults, and vulnerability to volatile interest rates, which could impact its operations and profitability.
- High business concentration in three states: Though the company has its presence in 15 states in India, three states alone contribute 63.4% of the asset under management (AUM) in FY 2022-23. With a network of 183 branches, 108 branches were located in the state of Rajasthan, Maharashtra and Madhya Pradesh. Hence any kind of significant political, social or economic change in these states will significantly impact the business of the company.
- Risk of non-payment by customers: As the company is into finance business, there is always a risk of non-payment or default by the customers. There is no assurance that the company’s risk management controls will be sufficient to prevent future losses on account of customer defaults, which may adversely affect our business, results of operations and financial condition.
- Volatile interest rates: The profitability of the company’s business depends on their ability to maintain their cost of funds as well as interest rates charged to their customers in the current volatile market. The profitability and the returns of the company will be impacted if the company is not able to effectively manage the changes in interest rates.
India Shelter Finance Corp Ltd IPO – Industry & Market Potential
The Indian housing finance market clocked a healthy 13.5% CAGR (growth in loan outstanding) over Financial Years 2019-2023 on account of rise in disposable incomes, healthy demand, and greater number of players entering the segment.
Over the past two Financial Years, the housing finance segment has seen favorable affordability on account of stable property rates and improved annual income of individual borrowers. The overall housing finance segment credit outstanding is approximately ₹ 31.1 trillion as of March 2023.
In Financial Year 2023, the RBI started increasing repo rates owing to concerns over increasing inflation and its impact on the macro economy amid geopolitical issues. Despite the aggressive rate hikes during the Financial Year, credit growth remained intact, with healthy growth by both banks and HFCs/NBFCs.
In Financial Year 2024, the credit growth momentum is expected to continue for HFCs/NBFCs, with affordable HFCs getting back on track, and expected to post robust growth.
India Shelter Finance Corporation Limited IPO – Type of Offer
India Shelter Finance Corporation Limited’s IPO comprises a Fresh Issue to raise INR 1,000 Crore for future lending capital and an Offer For Sale (OFS) by existing shareholders, including promoters and early investors, to raise INR 800 Crore, resulting in a total expected IPO fund of INR 1,800 Crore.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1000 Crore. This fund will fuel the future capital requirement towards onward lending.
- Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to raise INR 800 Crore. The following are the name of the shareholder selling the share:
- Catalyst Trusteeship Limited (as trustee of MICP Trust)
- Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund)
- Madison India Opportunities IV
- MIO Starrock
- Nexus Ventures III, Ltd.
- Nexus Opportunity Fund II, Ltd.
Therefore, the total money expected to be raised through this IPO is INR 1,800 Crore.
India Shelter Finance Corporation Limited IPO Offer Size
The India Shelter Finance Corporation IPO aims to raise a total of INR 1,800 Crore. This includes a fresh issue of INR 1000 Crore and an offer for sale (OFS) of INR 800 Crore. The funds from this IPO will be used to meet the future capital requirement towards onward lending, and meet common corporate objectives.
India Shelter Finance Corp Ltd IPO Allotment Structure
India Shelter Finance Corp Ltd’s IPO allotment structure allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and the remaining 35% to Retail Individual Investors (RIIs) with investments below Rs. 2 lakhs.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lahks.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lahks.
How to apply for a India Shelter Finance Corp Ltd IPO through Alice Blue?
To apply for the India Shelter Finance Corp Ltd IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the India Shelter Finance Corp Ltd IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for India Shelter Finance Corp Ltd IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check India Shelter Finance Corp Ltd IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the India Shelter Finance Corp Ltd IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the India Shelter Finance Corp Ltd IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the India Shelter Finance Corp Ltd IPO:
- Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the India Shelter Finance Corp Ltd IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
India Shelter Finance Corp Ltd IPO Offer Registrar
The registrar for the India Shelter Finance Corp Ltd IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No.31-32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana
Phone: +91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
India Shelter Finance Corp Ltd IPO FAQs
1. What is the allotment date of the India Shelter Finance Corp Ltd IPO?
The allotment date will be finalized on December 18, 2023, and the allotted shares will be credited to the customer’s demat account by December 19, 2023.
2. What is the price band of India Shelter Finance Corp Ltd IPO?
The price band of the shares issue is INR 469 to 493 per share.
3. What is the size of the India Shelter Finance Corp Ltd IPO?
The India Shelter Finance Corporation IPO aims to raise a total of INR 1,800 Crore. This includes a fresh issue of INR 1000 Crore and an offer for sale (OFS) of INR 800 Crore. The funds from this IPO will be used to meet the future capital requirement towards onward lending and meet common corporate objectives.
4. What is the listing date of the India Shelter Finance Corp Ltd IPO?
The listing date of the issue is December 20, 2023.
Click the link to access the web story now: India Shelter Finance Corp Ltd IPO
