Latest IPO: India Shelter Finance IPO opens today

India Shelter Finance IPO to be commencing from today onwards . The offering price is listed till December 15 which consists fresh equity of share 800 crore and offer for sale [OFS] 400 crore. Moreover, it is trading at a premium of Rs. 150 in the grey market.

Latest IPO: India Shelter Finance IPO opens today

The housing Finance firm India Shelter Finance is all set to go for its initial public offering debut with around 1200 crore offer. It is scheduled to open today and will last till Friday. The firm has decided on a price band of Rs.469-493 per share for the IPO with a face value of Rs. 5. The minimum allotted size for an application is around 30 shares. The minimum amount of investment required by retail investors is Rs.14,790.

The quota for retail investors in the firm has been fixed at 35 percent of the net offer. The QIB quota is fixed at 50 percent , while the quota for NII is reserved at 15 percent. Focusing especially on serving low and middle-income groups, the company has concentrated approximately 89.8 percent of its portfolio in Tier 2 and Tier 3 cities according to, RHP report of September 30.

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The forefront leading firms acting as anchor investors are ICICI Securities Limited, Citigroup, Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited. The registrar of the offering is Kfin Technologies. The basic purpose of raising funds is to meet future capital requirements towards onward lending and general corporate purposes. In addition to that, the company envisages leveraging the benefits of listing equity shares on stock exchanges, enhancing brand visibility among deserving customers and aims to establish a public market for equity shares in India.

India Shelter Finance corporation is a housing finance company regulated by the National Housing Bank, which specifically provides loan advances for housing activities. The company facilitates the housing finance needs of customers, focusing primarily on self-employed individuals.

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The company has strategically expanded its footprint through India, adopting a penetrative and inclusive approach to reach regions with robust economic growth and a significant demand for affordable housing finance. Home loans contribute to 57.6 percent of its assets under management [AUM], while loans against property represent the remaining 42.4 percent of AUM. 

As of March 31, 2023, rural areas, contributing 47 percent to the GDP, received a mere 8 percent of the total banking credit, showing a significant untapped market for banks and NBFCs. Organically, it is well advised to financiers as a best opportunity to invest and gain through this because housing is regarded as the engine of economic growth and can give a big push to the economy.

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