India Shelter FCL IPO – (L-R) Mr. Hardik Doshi (Director, Financial Institutions Group, Kotak Mahindra Capital Company Limited); Mr. Pritish Kandoi (EVP & Head BFSI, Corporate Finance, ICICI Securities); Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited); Mr. Ashish Gupta (CFO, India Shelter Finance Corporation Limited); Mr. Arvind Vashistha (Managing Director, Head of India Equity Capital Markets, Citigroup Global Markets India Private Limited); Mr. Ankur Aggarwal (Director, Investment Banking, Ambit Private Limited) at the press conference in connection to India Shelter Finance Corporation’s Initial Public Offering (IPO).- Photo By GPN
Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited) addressing the gathering at the press conference in connection to their Initial Public Offering (IPO) – Photo By GPN
India Shelter Finance Corporation Limited, a retail focused affordable housing finance company with an extensive distribution network comprising 203 branches as of September 30, 2023 and a scalable technology infrastructure across our business operations and throughout the loan life cycle, will open its Bid / Offer in relation to its initial public offer of Equity Shares on Wednesday, December 13, 2023.
MUMBAI, 8 DECEMBER, 2023 (GPN): Gurugram-based affordable housing financer India Shelter Finance Corporation will open for subscription on December 13. The company, backed by WestBridge Capital and Nexus Venture Partners, has fixed price band at Rs 469-493 per share and looks to raise Rs 1,200 crore at the upper end of the issue price. The bidding for anchor book will open for a day on December 12, while the shares are expected to be listed on the BSE and NSE on December 20.
The lot size of the IPO is 30 shares and in multiples thereof, which means the minimum application amount will be Rs 14,790 for one lot and maximum will be Rs 192,270 for 13 lots or 390 shares. The company has reserved half of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and remaining 35% for retail investors.
Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited) and Mr. Ashish Gupta (CFO, India Shelter Finance Corporation Limited) at the IPO Announcement of India Shelter Finance Corporation Limited
Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited) addressing the gathering at the press conference in connection to their Initial Public Offering (IPO) said to GPN that the company targets first-time home loan borrowers in Tier I and Tier 2 cities. “From the beginning, the focus was to take care of self-employed people instead of the salaried population in the low and middle-income segments with an aim to promote financial inclusion.”
In line with its financial inclusion vision, the company aims to empower women by ensuring that a majority of its loans have women as the first applicants, he says. “The company seeks to help address problems arising from patriarchy in Indian society and inculcate a feeling of security and independence in women.”
As per the updated prospectus filed with the SEBI, the Gurugram-based housing financing company has reduced its IPO size by 33% from Rs 1,800 crore mentioned in the initial document filed with SEBI in August this year. The company has reduced the fresh equity issue size to Rs 800 crore from Rs 1,000 crore announced earlier, while the offer for sale (OFS) part has been cut in half to Rs 400 crore from Rs 800 proposed in the DRHP.
Under the OFS, Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund), and Nexus Ventures III are the biggest selling shareholders, paring stakes worth Rs 171.3 crore and Rs 142.5 crore, respectively. Among others, Catalyst Trusteeship Limited (as trustee of MICP Trust), Madison India Opportunities IV, and MIO Starrock are also offloading shares via OFS.
The firm’s promoters – WestBridge Crossover Fund and Aravali Investments Holdings – hold shareholdings of 24% and 31.4%, respectively, while founder Anil Mehta owns a 1.7% stake in the company.
IndiaShelter Home Loans intends to use the fund raised from the issuance of fresh equities to meet future capital requirements towards onward lending. The fund will be partially utilised for general corporate purposes.
Incorporated in 1998, India Shelter Finance Corporation provides home loans and loans against property to customers in the low and middle-income segments. As of March 31, 2023, 97.5% of India Shelter loans had one or more borrowers as women. Out of this, more than 50% of women own properties in their name or joint parties.
Between the financial year 2021 and 2023, the firm registered a two-year CAGR growth of 40.8% in terms of assets under management (AUM), as per CRISIL report. This growth was achieved on the back of better asset quality with a gross NPA of 1.13% as of March 31, 2023, which was among the best in affordable housing finance companies in India.
As of March 31, 2023, India Shelter Finance had a network of 183 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.Ends
About India Shelter Finance Corporation Limited (ISFCL):
India Shelter Finance Corporation is a retail-focused, affordable housing finance company. Primarily serving the self-employed in low and middle-income groups, especially first-time home loan takers in Tier II and Tier III cities, the company offers affordable housing loans. The company has an extensive and well-established network of 203 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka and Gujarat. The firm also has a presence in states that cover 94% of the affordable housing finance market in India as on March 2023.
India Shelter Finance integrates advanced technology and analytics throughout its operations, enhancing every stage of the customer lifecycle. This integration spans from on-boarding and underwriting to asset quality monitoring, collections, and customer services. The company has seen a significant CAGR growth of 40.8% between FY 2021 and FY 2023 in assets under management. The AUM was Rs. 51,806.89 million as of H1FY24. A notable aspect of India Shelter Finance Corporation is its emphasis on empowering women in financial matters. As of September 30, 2023, 97.9% of its loans included women as borrowers. India Shelter Finance Corporation’s credit and risk management strategies, supported by advanced technology and data analytics, have effectively maintained asset quality.
As of September 30, 2023, the Company obtained long-term funding from a diversified lender base comprising over 37 counterparties, including 24 scheduled commercial banks. We have a healthy credit rating of ICRA A+ (stable) from ICRA Limited and CARE A+ (Positive) from CARE Limited, as of September 30, 2023.
The Company has a professional and experienced management team with experience in the banking and finance sectors. Mr. Rupinder Singh, Managing Director and Chief Executive Officer, has extensive experience in mortgage financing. Mr. Anil Mehta, is Individual Promoter and WestBridge Crossover Fund, LLC and Aravali Investment Holdings are Corporate Promoters, and other Shareholders include Nexus Ventures III, Ltd., MIO Starrock and Madison India Opportunities IV (Madison India Capital).Ends
The RHP is made available on the websites of SEBI at www. sebi.gov.in as well as on the websites of the book running lead managers (“BRLMs”) at www.icicisecurities.com, www.online.citibank.co.in/
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