India Shelter Finance Corporation Gears Up for Rs 1,200 Crore IPO: Public Issue Opens December 13th

8 Dec 2023 , 12:26 PM

India Shelter Finance Corporation, supported by WestBridge Capital and Nexus Venture Partners, is gearing up for its inaugural public offering, set to open for subscription on December 13, aiming to raise Rs 1,200 crore. The offering’s price band is fixed at Rs 469-493 per share, with the bidding window closing on December 15. The anchor book is scheduled for launch on December 12.

The IPO comprises a fresh issuance of Rs 800 crore worth of shares by the company and an offer-for-sale (OFS) of Rs 400 crore worth of shares by existing stakeholders. Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund) and Nexus Ventures III lead the OFS, offloading Rs 171.3 crore and Rs 142.5 crore in shares, respectively. Other selling shareholders in the OFS include Catalyst Trusteeship Limited (as trustee of MICP Trust), Madison India Opportunities IV, and MIO Starrock.

Aravali Investment Holdings, WestBridge Crossover Fund LLC, and Anil Mehta, with 31.2%, 23.8%, and 1.7% shares, respectively, serve as the promoters of India Shelter.

Among public shareholders, Nexus Ventures III and Nexus Opportunity Fund II jointly hold a 28.2% stake, while Catalyst Trusteeship (acting as Trustee for Madison Opportunities Trust Fund) holds a 5.2% stake, and MIO Starrock holds 4.9%.

The net proceeds from the fresh issue, amounting to Rs 640 crore, will be utilized to meet the company’s future capital requirements for lending, with the remaining funds allocated for general corporate purposes.

India Shelter, headquartered in Gurugram, focuses on providing home loans to first-time buyers in the low and middle-income groups in Tier-II and Tier-III cities in India. The offer reserves 50% for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 35% for retail investors.

Investors can bid for a minimum of 30 equity shares, with multiples of 30 shares thereafter. Retail investors can participate with a minimum investment of Rs 14,790 for 30 shares (one lot), and a maximum investment of Rs 1,92,270 for 390 shares (13 lots).

The basis of allotment for IPO shares will be finalized by December 18, and successful investors can expect the equity shares to be credited to their demat accounts by December 19. Trading in India Shelter’s equity shares is slated to commence on December 20.

The IPO is being managed by merchant bankers ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, and Ambit.