20-Dec-2023
2 mins read
India Shelter Finance Corporation celebrated its market debut with an impressive start, trading at a significant 25.7% premium compared to its IPO pricing. On its first day, the company’s shares were traded at Rs 620 on NSE and Rs 612.70 on BSE, well above the IPO price of Rs 493.
Exceptional Interest in the Public Offering
The public offering of India Shelter Finance, valued at Rs 1,200 crore, saw a remarkable oversubscription of 36.71 times. Investors placed bids for 65.75 crore shares, far exceeding the offered 1.79 crore shares, indicating a high level of investor confidence across various segments.
Anchor Investment Prior to IPO
Before the IPO, India Shelter Finance raised Rs 360 crore from anchor investors. This round saw participation from 38 notable investors, including global giants like Goldman Sachs and Massachusetts Institute of Technology, reflecting solid market trust in the company’s prospects.
Commitment to Affordable Housing Finance
Specializing in affordable housing finance, India Shelter Finance focuses on serving self-employed individuals in India’s lower and middle-income brackets, primarily in tier-2 and tier-3 cities. This strategic focus meets the increasing demand for affordable housing in these areas.
Expansive Operational Network and Financial Success
Boasting 203 branches spread over 15 states, India Shelter Finance Corporation has established a considerable presence, especially in areas like Rajasthan, Maharashtra, and Gujarat. On the financial front, the company experienced notable growth, with profits escalating by 21% to Rs 155.3 crore in FY23 and revenues rising by 30.5% to Rs 584.5 crore.
Sound Financial Strategies
The company’s prudent financial approach is evident in its conservative loan-to-value ratios in both home loan and LAP segments. Moreover, its Assets Under Management (AUM) witnessed a substantial 41.8% growth in FY23, reaching Rs 4,359.4 crore.
The successful market entry and solid financial performance of India Shelter Finance Corporation highlight its robust standing in the housing finance sector and its promising prospects for future growth in the Indian market.