India Shelter Finance IPO: Check dates, price band, latest GMP and more details

India Shelter Finance Corporation Limited, a leading player in the housing finance sector, is set to launch its Initial Public Offering (IPO) on December 13, 2023. The IPO, a book-built issue, aims to raise Rs 1,200 crores, combining a fresh issue of 1.62 crore shares worth Rs 800 crores and an offer for sale of 0.81 crore shares totaling Rs 400 crores.

Subscription Period and Allotment

Investors keen on participating in the India Shelter Finance IPO can do so from December 13 to December 15, 2023. The allotment process is expected to be finalised on Monday, December 18, 2023. The listing of India Shelter Finance IPO on both BSE and NSE is tentatively scheduled for Wednesday, December 20, 2023.

Price Band and Lot Size

The price band for the IPO is set at Rs 469 to Rs 493 per share, with a minimum lot size of 30 shares. Retail investors can enter the market with a minimum investment of Rs 14,790, while non-institutional investors (NII) have a minimum lot size of 14 lots (420 shares) requiring an investment of Rs 207,060. Qualified institutional buyers (QIBs) have a minimum lot size of 68 lots (2,040 shares) with an investment of Rs 1,005,720.

Lead Managers and Registrar

India Shelter Finance IPO is under the stewardship of leading book-running lead managers, including ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited. Kfin Technologies Limited has been appointed as the registrar for the issue.

About India Shelter Finance Corporation Limited

Established in 1998, India Shelter Finance Corporation Limited is a key player in the housing finance sector, providing loans for house construction, extension, renovation, and the purchase of new homes or plots. Additionally, the company offers Loans Against Property (LAP). With loan amounts ranging from Rs. 5 Lakhs to Rs. 50 Lakhs and a maximum tenure of 20 years, the company has disbursed over Rs. 5500 Crores in loans as of November 30, 2023.

As of March 31, 2023, India Shelter has expanded its network to 183 branches across 15 states, including a significant presence in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat. The company's branch count has witnessed substantial growth, increasing from 115 as of March 31, 2021, to 130 as of March 31, 2022, and further expanding to 183 as of March 31, 2023. India Shelter Finance boasts an in-house team of over 300 collection officers as of March 31, 2023.

Objectives of the Issue

The net proceeds from the IPO will be utilised for funding future capital requirements towards onward lending and general corporate purposes, according to the DRHP.

Market Buzz

As of December 9, 2023, the Grey Market Premium (GMP) for India Shelter Finance Corporation IPO stands at Rs 200, according to Investor Gain. With a price band of Rs 493.00, the estimated listing price is projected to be Rs 693, reflecting an expected percentage gain per share of 40.57 per cent. Investors are closely watching this IPO as it navigates the dynamic market landscape.

India Shelter Finance Corporation IPO marks a significant milestone for the company, and market enthusiasts are eagerly anticipating its subscription and subsequent listing, anticipating positive outcomes in the competitive housing finance sector.