India Shelter Finance IPO Date, Price band, Lot Size, GMP, Details, and Review
The India Shelter Finance Corporation Limited IPO marks a significant milestone in the Indian financial market, launching an eagerly anticipated book-built issue valued at an impressive ₹1,200.00 crores. This comprehensive public offering combines a fresh issue of 1.62 crore shares, amounting to ₹800.00 crores, with an offer for sale of 0.81 crore shares, aggregating to ₹400.00 crores.
Prospective investors should note the key dates: The subscription window for the India Shelter Finance IPO opens on December 13, 2023, and remains accessible until December 15, 2023, offering a strategic investment opportunity for those interested in the financial sector. The India Shelter Finance IPO is priced attractively between ₹469 and ₹493 per share, with a minimum lot size of 30 shares, requiring a minimum investment of ₹14,790 for retail investors.
Additionally, significant net individual investors (sNII) can invest in 14 lots (420 shares) for ₹207,060, and big net individual investors (bNII) have an option for 68 lots (2,040 shares), totaling ₹1,005,720.
As per the India Shelter Finance IPO GMP, the estimated listing price for India Shelter Finance IPO is between Rs ₹640 to ₹670.
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Page Contents
India Shelter Finance IPO Details
| IPO Date | December 13, 2023 to December 15, 2023 |
| Listing Date | December 20, 2023 |
| Face Value | ₹5 per share |
| Price Band | ₹469 to ₹493 per share |
| Lot Size | 30 Shares |
| Total Issue Size | 24,340,771 shares (aggregating up to ₹1,200.00 Cr) |
| Fresh Issue | 16,227,181 shares (aggregating up to ₹800.00 Cr) |
| Offer for Sale | 8,113,590 shares of ₹5 (aggregating up to ₹400.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 90,823,956 |
| Share holding post issue | 107,051,137 |
India Shelter Finance IPO Dates
| IPO Open Date | Wednesday, December 13, 2023 |
| IPO Close Date | Friday, December 15, 2023 |
| Basis of Allotment | Monday, December 18, 2023 |
| Initiation of Refunds | Tuesday, December 19, 2023 |
| Credit of Shares to Demat | Tuesday, December 19, 2023 |
| Listing Date | Wednesday, December 20, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 15, 2023 |
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India Shelter Finance IPO Lot Size
| Investor Type | Application Lots | Shares (Min) | Amount (Min) |
|---|---|---|---|
| Retail (Min) | 1 | 30 | ₹14,790 |
| Retail (Max) | 13 | 390 | ₹192,270 |
| S-HNI (Min) | 14 | 420 | ₹207,060 |
| S-HNI (Max) | 67 | 2,010 | ₹990,930 |
| B-HNI (Min) | 68 | 2,040 | ₹1,005,720 |
India Shelter Finance IPO GMP
| GMP Date | India Shelter Finance IPO GMP | Estimated India Shelter Finance IPO Listing Price |
|---|---|---|
| 13-12-2023 | ₹170 | ₹663 (34.48%) |
| 13-12-2023 | ₹145 | ₹638 (29.41%) |
| 12-12-2023 | ₹145 | ₹638 (29.41%) |
| 11-12-2023 | ₹150 | ₹643 (30.43%) |
| 10-12-2023 | ₹190 | ₹683 (38.54%) |
| 09-12-2023 | ₹220 | ₹713 (44.62%) |
India Shelter Finance Corporation Limited Company Overview
India Shelter Finance Corporation Limited, founded in 1998 and formerly known as Satyaprakash Housing Finance India Limited, specializes in housing finance services. They offer a range of loans for house construction, extension, renovation, and acquisition of new homes or plots, including Loan Against Property (LAP) options. The company provides loans from Rs. 5 Lakhs to Rs. 50 Lakhs, with repayment periods extending up to 20 years.
As of November 30, 2023, India Shelter has disbursed loans exceeding Rs. 5500 Crores, significantly aiding families in owning, extending, or enhancing their homes. The company boasts an expansive network of 203 branches across 15 states, including notable presences in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat. This network has seen rapid growth, expanding from 115 branches in March 2021 to 203 by September 2023.
Embracing a Phygital (Physical + Digital) approach, India Shelter combines traditional “foot on the street” customer service with over 1,500 customer advisors (as of September 30, 2023) and modern digitalization in its credit and banking processes. This blend ensures efficient and personalized customer experiences.
Furthermore, the company has invested in an in-house team of over 300 collection officers as of March 31, 2023, to streamline its operations. To further enhance customer satisfaction, it has introduced iServe, a dedicated customer service application, offering timely online support for existing customers.
A notable aspect of India Shelter’s customer base is its focus on inclusivity and first-time homeowners. As of March 31, 2023, a significant 97.5% of borrowers included one or more women, and 71.3% were first-time home loan applicants, highlighting the company’s commitment to supporting diverse and underserved segments in the housing finance market.
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India Shelter Finance Corporation Limited Financials
India Shelter Finance Corporation Limited (ISFCL) demonstrated robust financial growth over recent years. Their revenue surged impressively by 31.84% from the financial year ending March 31, 2022, to March 31, 2023. This remarkable growth trajectory was paralleled by a substantial 20.94% increase in Profit After Tax (PAT) during the same period.
| Financial Metrics | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | ₹4,758.68 | ₹4,295.59 | ₹3,221.22 | ₹2,462.64 |
| Revenue | ₹398.58 | ₹606.23 | ₹459.81 | ₹322.80 |
| Profit After Tax | ₹107.35 | ₹155.34 | ₹128.45 | ₹87.39 |
| Net Worth | ₹1,374.97 | ₹1,240.53 | ₹1,076.13 | ₹937.27 |
| Reserves and Surplus | ₹1,335.36 | ₹1,197.98 | ₹1,033.02 | ₹894.20 |
| Total Borrowing | ₹3,272.48 | ₹2,973.43 | ₹2,059.40 | ₹1,480.72 |
Analyzing the specific financial metrics, we see a clear trend of progressive growth:
- Total assets expanded significantly from ₹3,221.22 crore in March 2021 to ₹4,758.68 crore by September 2023.
- Revenue followed a strong upward trajectory, climbing from ₹322.80 crore in March 2021 to ₹606.23 crore by March 2023.
- PAT, a key indicator of profitability, rose from ₹87.39 crore in March 2021 to ₹155.34 crore by March 2023.
- The company’s net worth saw a steady increase, reaching ₹1,374.97 crore in September 2023 from ₹937.27 crore in March 2021.
- Reserves and surplus also saw a healthy growth, reflecting the company’s financial stability, rising from ₹894.20 crore in March 2021 to ₹1,335.36 crore in September 2023.
- Total borrowings, which reflect the company’s financial leverage, grew from ₹1,480.72 crore in March 2021 to ₹3,272.48 crore by September 2023, indicating strategic investments for growth.
This analysis reveals ISFCL’s successful financial strategy, marked by steady growth in revenue and profits, alongside a robust increase in assets and net worth. Such financial performance illustrates the company’s strong market position and operational efficiency.
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India Shelter Finance IPO Review and Recommendation
Advantages of Investing in India Shelter Finance IPO
- Dominant Market Position: ISFC stands as a significant force in the affordable housing finance market, boasting a substantial 70% share in India’s domestic cryogenic equipment market and 15% globally. With its extensive network of 209 branches across 15 states as of October 31, 2023, the company demonstrates a strong growth trajectory and profitability record.
- Promising Industry Outlook: The affordable housing finance sector is projected to grow at a CAGR of 18% from FY21 to FY26. Factors such as increasing housing demand, government initiatives, low formal finance penetration, and favorable demographics in India bolster ISFC’s growth potential. The company’s focus on serving self-employed individuals with informal income documents offers a unique market advantage.
- Attractive Valuation: Priced at a P/E ratio of 32x for FY23 earnings, the ISFC IPO sits below the industry average of 35x. This pricing, coupled with a 10% discount for retail investors and employees, makes it a lucrative option, backed by positive analyst reviews and a strong grey market premium.
Risks Associated with India Shelter Finance IPO
- Industry Cyclicality: The company’s performance is closely tied to the affordable housing finance sector’s demand-supply dynamics, influenced by macroeconomic trends, interest rates, and regulatory policies. This cyclical nature could impact loan disbursements and profitability.
- Regulatory Risks: ISFC operates under numerous Indian regulations, such as the Housing Finance Companies Directions, 2010, and others. Any regulatory changes or non-compliance issues could adversely affect the company’s operations.
- Credit Risk and Asset Quality Concerns: The company faces potential default risks in its loan portfolio, which could lead to increased provisions and impairments. The gross NPA ratio rose from 1.76% to 2.01% as of September 30, 2023, signaling potential asset quality issues.
- Competitive and Customer Concentration Risks: ISFC operates in a highly competitive sector with major players like HDFC and LIC Housing Finance. Additionally, a significant portion of the loan portfolio is concentrated among the top 10 customers, posing a risk of customer loss or reduced market share.
The India Shelter Finance IPO offers a chance to invest in a leader in the burgeoning affordable housing finance market. With a strong product portfolio and positive market sentiment, the IPO is anticipated to attract considerable investor interest. However, investors should carefully weigh the associated risks, like industry cyclicality and regulatory challenges, before making an investment decision. It’s crucial to thoroughly review the red herring prospectus and seek advice from a financial advisor.
Final Thoughts on India Shelter Finance IPO Date, Price band, Lot Size, GMP
Investors considering India Shelter Finance IPO will find a compelling opportunity in a sector projected to expand at a compound annual growth rate (CAGR) of 18% from FY21 to FY26. India Shelter Finance Corporation boasts a strong market presence, diverse product offerings, a solid order book, a dedicated customer base, and a consistent record of growth and profitability.
Additionally, its scalable technological infrastructure, extensive distribution channels, and favorable credit ratings make it an attractive prospect. Notably, the India Shelter Finance IPO’s price-to-earnings (P/E) ratio is set at 32x for FY23 earnings, below the industry average of 35x. Retail investors and eligible employees also benefit from a 10% discount.
Potential investors should, however, consider various risks associated with this investment. These include the cyclical nature of the housing finance industry, potential regulatory changes, credit risks and asset quality concerns, as well as competitive pressures and customer concentration issues. It is advisable for investors to thoroughly review the red herring prospectus and seek advice from a financial advisor before making investment decisions.
