India Shelter Finance lists at Rs 620, over 25% premium to IPO price

The 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

Shares of India Shelter Finance Corporation made a strong debut on bourses on December 20, listing at a 25.7 percent premium to the issue price. The stock started trading at Rs 620 on the National Stock Exchange (NSE) and Rs 612.70 on the BSE against the issue price of Rs 493.

The Rs 1,200-crore public offer was subscribed 36.71 times, receiving bids for 65.75 crore shares against an issue size of 1.79 crore.

Retail investors bought 9.95 times, non-institutional investors (NII) picked up 28.51 times and qualified institutional buyers (QIB)  bought 89.7 times their allotted quota of shares .

Follow our live blog for all the market action

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

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-2 and 3 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.

The housing finance company recorded a profit of Rs 155.3 crore in FY23, rising 21 percent over the previous year. Revenue increased by 30.5 percent to Rs 584.5 crore.

The company maintains a conservative loan-to-value proportion of 55.1 percent in the home loan category and 45.3 percent in the LAP (loan against property) segment. In FY23, AUM grew by 41.8 percent on-year to Rs 4,359.4 crore.