India Shelter Finance IPO

India Shelter Finance Corporation Limited

₹14,070 /30 sharesMinimum Investment

India Shelter Finance IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹493.00₹620.00₹127.00 (25.76%)

India Shelter Finance IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
13 Dec ‘23 - 15 Dec ‘23₹14,07030₹469 - ₹493
Issue SizeIPO Doc
1200.00Cr
RHP PDF

Subscription Status As on 15 Dec '23, 5:00 PM

  • Qualified Institutional Buyers
    89.70x
  • Non-Institutional Investor
    28.47x
  • Retail Individual Investor
    9.79x
  • Employees
    0.00x
  • Total
    36.62x

About India Shelter Finance

India Shelter Finance is a retail-focused company focusing on giving affordable housing loans. The company targets self-employed individuals, particularly first-time home loan applicants in low and middle-income groups in Tier II and Tier III cities in India. India Shelter Finance's strategy involves leveraging technology and analytics throughout the customer life cycle. India Shelter Finance follows an end-to-end in-house approach for key lending operations, including customer acquisition, underwriting, collateral valuation, legal assessment, and collections. This approach ensures direct control over processes, minimizing turnaround times, increasing customer retention, and mitigating the risk of fraudulent activities.;
Parent Organisation
India Shelter Finance Corporation Limited
Founded
1998
Managing Director
Mr. Rupinder Singh

Strengths & Risks

  • India Shelter Finance primarily focuses on financing the purchase and self-construction of residential properties for first-time home loan takers. As of September 30, 2023, a significant 70.7% of their customers fall into this category.
  • The company's asset under management (AUM) composition reflects a strategic balance, with home loans accounting for 57.6% and loans against property representing 42.4%.
  • India Shelter Finance achieved an AUM growth of 40.8% between 2021 and 2023.
  • Distinguishing itself by catering to low and middle-income individuals, both salaried and self-employed, the company maintains a customer-centric approach. As of September 30, 2023, most of their customers have a monthly income of up to Rs. 50,000. A substantial portion of their loan portfolio comprises loans with principal amounts below Rs. 2.5 million.
  • India Shelter Finance’s loan-to-value ratios stand at 55.1% for home loans and 45.3% for loans against property as of September 30, 2023.
  • With a phygital distribution network spanning 203 branches across 15 states, India Shelter Finance positions itself in high-growth areas with substantial demand for affordable housing finance. Their presence is in states that cover 94% of the affordable housing finance market.
  • India Shelter Finance has reduced gross non-performing assets (GNPA) to 1.13% as of March 31, 2023.
  • For the six months ending September 30, 2023, and 2023, most of India Shelter Finance's assets under management, specifically 62.7% and 63.4%, respectively, originated from 3 states. Any negative developments in these states could harm the company's business, financial condition, and operational results.
  • The company's ability to recover collateral or outstanding amounts from defaulted loans promptly, or at all, may impact its business, financial condition, and operational results negatively.
  • Regular inspections by the National Housing Bank and the Reserve Bank of India are part of the company's regulatory landscape. Failure to comply with inspection observations may lead to penalties and fines, adversely affecting the company's reputation, business, financial condition, operational results, and cash flows.
  • Historically experiencing negative cash flows, the company may continue to face such situations in the future.
  • A corporate promoter, WestBridge Crossover Fund, LLC, has invested in Aptus Value Housing Finance Limited, a company in a similar line of business as India Shelter Finance.
  • With a focus on first-time home loan takers in India's Tier II and Tier III cities, the company acknowledges a potentially higher risk of non-payment or default among such customers. As of September 30, 2023, 70.7% of its customers fall into this category.
  • While maintaining a Capital to Risk-Weighted Assets Ratio (CRAR) exceeding RBI requirements, sustaining this level may limit the company's ability to deploy capital for profit-generating opportunities, portfolio expansion, or strategic investments.
  • Legal and other proceedings involving the company and its directors pose potential risks, and any unfavorable outcomes could adversely impact its business, financial condition, and operational results.
  • The company faces risks from customer decisions to transfer loan balances to other institutions, pre-close fixed-rate loans, or encounter difficulties refinancing existing housing loans from other institutions to India Shelter Finance.
  • Unprovided contingent liabilities and commitments in financial statements may adversely affect the company's operational results, financial condition, and cash flows if they materialize.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular469 - 493₹2 Lakh
High Networth Individual469 - 493₹2 - 5 Lakh
For India Shelter Finance IPO, eligible investors can apply as Regular.
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