India Shelter Finance IPO: Issue booked 36 times, retail portion subscribed 9x on final day

Ahead of the IPO, India Shelter Finance raised Rs 360 crore from anchor investors

India Shelter Finance Corporation’s public offer was subscribed 36.71 times on the final day of bidding, December 15, receiving bids for 65.75 crore shares against an issue size of 1.79 crore shares. Retail investors bought 9.95 times, non-institutional investors (NII) picked up 28.51 times and qualified institutional buyers (QIB)  bought 89.7 times the allotted quota.

Ahead of the IPO, the retail-focused affordable housing finance company raised Rs 360 crore from anchor investors. 38 investors participated in the anchor book, including marquee names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT, and Steinberg India.

Also read: India Shelter Finance IPO: Should you subscribe to Rs 1,200 crore issue?

ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, UTI Mutual Fund, Mirae Asset, Whiteoak Capital, LGT Select Funds, Tata Mutual Fund, Franklin India, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Bandhan Financial Services, Quant Mutual Fund, and Axis Growth Avenues AIF 1 were among the anchor investors.

The company plans to raise Rs 1,200 crore from the IPO. The offer consists of 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 (as trustee of Madison India Opportunities Trust Fund) and Nexus Ventures III are the biggest selling shareholders in the OFS, offloading Rs 171.3 crore and Rs 142.5 crore worth of shares.

Also read: India Shelter Finance IPO: 10 things to know before subscribing to Rs 1,200 crore issue

The firm will use the net fresh issue proceeds to meet its future capital requirements for lending, which amounts to Rs 640 crore, and will keep the rest of the funds for general corporate purposes.

India Shelter Finance Corporation is a retail-focused, affordable housing finance company, primarily serving the self-employed in low and middle-income groups, especially first-time home loan takers in Tier-II and Tier-III cities. The company has a network of 203 branches spread across 15 states with a significant presence in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka and Gujarat.

Also read: India Shelter IPO: Anchor investors pick Rs 360-cr worth of shares, issue opens on December 13