India Shelter Finance had a decent market debut, listing at a 25.7 percent premium to the IPO price of Rs 493 on December 20. The stock opened at Rs 620 on the NSE and Rs 612.70 on the BSE.
The Rs 1,200 crore public offer consisted 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. The price band for the issue was fixed at Rs 469-493 per share.
Should you buy, sell or hold India Shelter Finance?
Also Read: India Shelter Finance lists at Rs 620, over 25% premium to IPO price
Swastika Investmart: Book profit
India Shelter boasts strong fundamentals built on years of experience in the affordable housing market. The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homes.
“India Shelter has demonstrated consistent financial performance with a track record of revenue and profit growth. Investors are advised to book this listing gain; however, those who still want to hold it may keep a stop loss at Rs 558,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
Also Read: DOMS Industries debuts with 77% premium: Should you buy, hold or book-profit?
StoxBox: Hold
The decent listing was due to healthy asset quality, which led to a fall in its GNPA to 1 percent in the September quarter, compared to 2.8 in the same period of the previous year.
The company has been able to maintain a consistently high yield of more than 14 percent on its portfolio, driven by its commitment to deliver strong financial performance in the last three financial years, the brokerage said.
The company also plans to expand its branch staff, extend the network within existing geographical areas and explore opportunities in adjacent markets for diversification.
“With credit growth in the housing segment expected to remain robust in the medium term and ISFC commanding premium yields, we advise investors who have received allotment to hold shares from a medium to long-term perspective and not get swayed away to book listing gains,” said Shreyansh Shah, Research Analyst, StoxBox.
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