Gurugram-headquartered affordable housing firm India Shelter Finance, which is backed by marquee investors Westbridge Capital and Nexus Venture Partners, is gearing up to launch an initial public offer (IPO) to raise around Rs 2,000 crore, multiple industry sources in the know told Moneycontrol.
"India Shelter Finance has mandated ICICI Securities, Kotak Mahindra Capital and Citi as investment banks for their proposed IPO," said one of the persons cited above.
A second person told Moneycontrol that the firm had fared well in the affordable housing segment and was doing a good job in terms of asset quality.
"Their gross NPA and net NPA levels are healthy. With competition intensifying in the segment, they are looking for growth capital, " this person added.
The IPO will largely consist of a primary component, with some OFS (offer for sale) portion to facilitate an exit for investors, a third person told Moneycontrol adding that India Shelter Finance wanted to improve its access to capital and reduce its cost of funding.
All the three persons above spoke to Moneycontrol on condition of anonymity.
Moneycontrol has sent reminders and is awaiting an email response from India Shelter Finance and Kotak Mahindra Capital. When contacted, ICICI Securities and Citi declined to comment.
A CLOSER LOOK AT INDIA SHELTER FINANCE
India Shelter Finance has operations across 180 plus branches in 15 states in India, offering affordable housing and small ticket loans against property. The firm has been running for 13 years and largely caters to self-employed customers with informal income documents.
According to its website, its product offering comprises financing for new house purchases, home expansion and upgrades, home-building loans on previously owned land and loans against property. The firm has helped over 60,000 families by disbursing over Rs 4,000 crore in loans.
India Shelter Finance Corporation Ltd (ISFC) is the new name of the erstwhile Satyaprakash Housing Finance India Limited (SHFIL) which was granted the certificate of Registration by National Housing Bank on October 26, 1998. The business was taken over by a group of professionals with experience across diverse businesses and relaunched on March 12, 2010, the website adds.