India Shelter Finance IPO Day 1: Issue subscribed 0.98 times, retail portion fully booked

13 Dec 2023 , 03:14 PM

On the first day of bidding, India Shelter Finance Corporation’s public issue has witnessed a promising start, with a subscription rate of 0.98 times by 03.15 PM, receiving bids for 1,75,55,280 shares against an issue size of 1,79,10,449 shares. The IPO, set to close on December 15, 2023, is drawing significant interest from diverse investor segments. Click here to subscribe the IPO.

Key Highlights:

• Subscription Rate: 0.98 times
• Retail Investors: Subscribed 1.43 times
• Non-Institutional Investors: Subscribed 0.92 times
• Qualified Institutional Investors: Subscribed 0.24 times

India Shelter Finance, a retail-focused affordable housing finance company, secured a substantial Rs 360 crore from anchor investors on December 12. The anchor book witnessed participation from 38 investors, including prestigious names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT, and Steinberg India. Leading mutual funds like ICICI Prudential, Nippon Life India, Kotak Mahindra, UTI, Mirae Asset, and others also joined the anchor investor lineup.

IPO Structure and Offer Size: The company aims to raise Rs 1,200 crore from the IPO, comprising a fresh issue of 1.62 crore shares worth Rs 800 crore and an offer-for-sale of 81.13 lakh shares worth Rs 400 crore. Catalyst Trusteeship and Nexus Ventures III lead the offer-for-sale, divesting shares worth Rs 171.3 crore and Rs 142.5 crore, respectively.

Investor Allocation:

• Qualified Institutional Buyers (QIBs): 50% of the offer size
• High Net-Worth Individuals (HNIs): 15%
• Retail Investors: 35%

Price Band: The price band for the IPO is set at Rs 469-493 per share.

Utilization of Funds: India Shelter Finance plans to utilize the net fresh issue proceeds primarily to meet future capital requirements for lending, amounting to Rs 640 crore, with the remainder allocated for general corporate purposes.