India Shelter Finance IPO: What GMP signals ahead of issue launch on Wednesday

The initial public offering (IPO) of India Shelter Finance will open for subscription on December 13. Ahead of the issue opening, the company's shares are trading at a premium of Rs 150, down from Rs 190 a few days ago.

The GMP is 30% higher compared with the upper price band of Rs 493.

The public offer, which closes on December 15, comprises fresh equity issue of Rs 800 crore and an offer for sale (OFS) of Rs 400 crore.


About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the remaining 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 and FY23, it witnessed a two-year CAGR growth of 40.8% in terms of assets under management (AUM).

The company offers home loans of up to Rs 50 lakh 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 groups in Tier II and Tier III cities in India.

The company has recorded 32% year-on-year growth in 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 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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