WestBridge, Nexus Venture-backed India Shelter to float Rs 1,200-cr IPO on Dec 13

India Shelter Finance Corporation IPO opens on December 13

Affordable housing financer India Shelter Finance Corporation, backed by WestBridge Capital and Nexus Venture Partners, is on track to float its maiden public issue for subscription on December 13 to raise Rs 1,200 crore.

This is going to the second IPO opening next week, after Doms Industries. The price band for the offer, which will close for bids on December 15, has been fixed at Rs 469-493 per share. The anchor book will be launched for a day on December 12.

The initial public offering consists of fresh issuance of shares worth Rs 800 crore by the company, and an offer-for-sale (OFS) of Rs 400 crore worth of shares by existing shareholders.

Catalyst Trusteeship Limited (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 shares.

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Catalyst Trusteeship Limited (as trustee of MICP Trust), Madison India Opportunities IV, and MIO Starrock are other selling shareholders in the OFS.

Aravali Investment Holdings, WestBridge Crossover Fund LLC and Anil Mehta are the promoters of the company, holding 31.2 percent, 23.8 percent and 1.7 percent shares, in India Shelter.

Among public shareholders, Nexus Ventures III and Nexus Opportunity Fund II together hold 28.2 percent stake in the firm. Catalyst Trusteeship (acting as Trustee for Madison Opportunities Trust Fund) has 5.2 percent stake and MIO Starrock 4.9 percent.

Also read: Doms Industries sets IPO price band at Rs 750-790, issue opens on Dec 13

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

The Gurugram-based company that focusses on first time home loan takers in the low and middle income group in Tier-II and Tier-III cities in India has reserved half of the offer size for qualified institutional buyers, and 15 percent for high net-worth individuals. The remainder 35 percent of the offer is set aside for retail investors.

Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. Retail investors can make minimum investment of Rs 14,790 for 30 shares (one lot), and their maximum investment will be Rs 1,92,270 for 390 shares (13 lots).

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Aptus Value Housing Finance India, Aavas Financiers, and Home Finance Company India are the comparable peers, the company said.

India Shelter will finalise the basis of allotment of IPO shares by December 18 and the equity shares will be credited to demat accounts of successful investors by December 19.

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The trading in equity shares of the housing finance company will commence with effect from December 20.

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