India Shelter Finance IPO: Issue subscribed 1.48 times on Day 1. Check GMP and other details

The initial public offer (IPO) of India Shelter Finance was subscribed 1.48 times on the first day of the bidding process. The issue closes on December 15.

The retail and non-institutional parts of the offer were fully subscribed, while that of qualified institutional investors was booked 57%.

In the grey market, the company's shares are trading with a premium of Rs 135. The IPO was priced in the range of Rs 469-493.


Analysts advised investors to subscribe to the issue over stable financial performance, tech-driven operations, and scalable business model, which presents future growth opportunities.

The public offer comprises a fresh equity issue of Rs 800 crore and an offer for sale (OFS) of Rs 400 crore. The issue is priced at Rs 493 at the upper end.

About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.

India Shelter Finance is a retail-focused affordable housing finance company with an extensive distribution network and a scalable technology infrastructure. Between FY21-FY23, it witnessed a two-year CAGR growth of 40.8% in terms of assets under management (AUM).

The company offers home loans up to Rs 50 lakhs to urban households for construction, extension, renovation and purchase of new homes.

Its target segment is the self-employed customer with a focus on first-time home loan takers in the low and middle-income group in Tier II and Tier III cities in India.

India Shelter Finance has recorded 32% year-on-year growth in its total income at Rs 606 crore for the financial year ended March 2023. Profit for the same period rose 21% to Rs 155 crore.

The net proceeds from the fresh issue will go towards meeting the future capital requirements and general corporate purposes.

ICICI Securities, Citigroup Global Markets, Kotak Mahindra Capital Company and Ambit Pvt Ltd are the book-running lead managers for the IPO.

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