Westbridge, Nexus-backed India Shelter Finance files for Rs 1,800 crore IPO

India Shelter Finance IPO comprises fresh issue of Rs 1,000 crore, and OFS of Rs 800 crore

Marquee investors WestBridge Crossover Fund, and Nexus Ventures-backed India Shelter Finance Corporation has filed draft red herring prospectus with the capital markets regulator Sebi to raise Rs 1,800 crore via initial public offering.

The IPO comprises a fresh issuance of shares worth Rs 1,000 crore by the company, and an offer for sale of Rs 800 crore by investors Catalyst Trusteeship, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III, and Nexus Opportunity Fund II.

Promoters WestBridge Crossover Fund LLC holds 24 percent stake and Aravali Investment Holdings 31.4 percent stake in the Gurugram-headquartered affordable housing firm.

Among investors, Nexus Ventures III Ltd holds 22 percent shareholding, Nexus Opportunity Fund II 6.4 percent, Catalyst Trusteeship 5.3 percent, MIO Starrock 4.9 percent, and Madison India Opportunities IV 1.4 percent.

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The retail-focused housing finance company may consider a private placement of Rs 200 crore, the pre-IPO placement, before filing the red herring prospectus with the RoC.

Moneycontrol was the first to report the IPO fund raising news in May 2023.

The fresh issue proceeds will mainly be utilised for future capital requirements towards onward lending, and general corporate purposes, while the offer for sale money will go to selling shareholders.

India Shelter Finance, which recorded assets under management growth at a CAGR of 40.8 percent during FY21-FY23, has a network of 183 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka and Gujarat.

The housing finance company has registered profit of Rs 155.3 crore for the year ended March FY23, rising 21 percent over previous year. Revenue from operations during the same period increased by 30.5 percent to Rs 584.5 crore.

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ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, and Ambit are the merchant bankers to the issue.