India Shelter Finance IPO
India Shelter Finance IPO Details
IPO Open
13 December 2023
IPO Close
15 December 2023
Price Band
₹469 – ₹493
Issue Size
₹1,200 Cr
Market Cap
₹5277.62
Min. Lot Size
30
Face value
₹5
GMP
₹135
IPO Timeline
IPO Open
13 December 2023
IPO Close
15 December 2023
Allotment
18 December 2023
Refund initiation
19 December 2023
Demat transfer
19 December 2023
Listing
20 December 2023
About India Shelter Finance Corporation Limited
India Shelter Finance Corporation Limited (ISFC) is a retail-focused housing finance company headquartered in Gurugram, India. Incorporated in 1998, it caters specifically to the affordable housing segment, offering loans for home purchase, construction, extension, and improvement. As of November 2023, ISFC has disbursed over Rs. 5500 crores in loans, helping countless families realize their dream of homeownership.
Driven by a strong distribution network and a scalable technology infrastructure, ISFC offers a variety of loan products designed to meet the diverse needs of its customers. These include:
- Home Loans: For purchasing new or existing homes, with flexible repayment options.
- Construction Loans: To finance the construction of a new home on owned land.
- Extension Loans: To expand or renovate an existing home.
- Improvement Loans: To upgrade or repair an existing home.
ISFC stands out for its commitment to responsible lending practices and its focus on financial inclusion. By providing affordable home loan solutions, it plays a crucial role in bridging the housing gap in India and empowering individuals and families to achieve their aspirations.
In addition to its core loan products, ISFC offers other services such as:
- Loan against property: To unlock the equity in your existing property for various financial needs.
- Microfinance loans: For low-income individuals and small businesses.
- Property insurance: To protect your home against unforeseen events.
With a strong track record and a commitment to customer satisfaction, ISFC has established itself as a leading player in the affordable housing finance sector in India. Its focus on innovation, technology, and social responsibility continues to drive its growth and impact on the lives of millions.
About India Shelter Finance IPO
India Shelter Finance Corporation Limited (ISFC), is set to launch its IPO on December 13, 2023.
The India Shelter Finance IPO comprises a fresh issue of Rs. 800 crores (1.62 crore shares) and an offer for sale (OFS) of Rs. 400 crores (0.81 crore shares) by existing shareholders. The price band has been set at ₹469 – ₹493 per share, with the minimum lot size for retail investors being 30 shares, requiring an investment of at least ₹14,790.
The IPO is open for subscription from December 13th to December 15th, 2023, with a tentative listing date of December 20th, 2023, on both BSE and NSE.
Offering Details:
- Issue Size: Rs. 1,200 crores
- Fresh Issue: Rs. 800 crores (1.62 crore shares)
- Offer for Sale (OFS): Rs. 400 crores (0.81 crore shares)
Key Dates:
- Opening Date: December 13, 2023
- Closing Date: December 15, 2023
- Allotment Date: December 18, 2023
- Listing Date: December 20, 2023 (tentative)
Price Band and Lot Size:
- Price Band: ₹469 to ₹493 per share
- Minimum Lot Size: 30 shares
- Minimum Investment:
- Retail Investors: ₹14,790
- NII: ₹207,060 (14 lots)
- bNII: ₹1,005,720 (68 lots)
Book Running Lead Managers:
- ICICI Securities Limited
- Citigroup Global Markets India Private Limited
- Kotak Mahindra Capital Company Limited
- Ambit Private Limited
Registrar:
- Kfin Technologies Limited
Industry Overview
India Shelter Finance Corporation Limited operates in the dynamic and growing affordable housing finance sector in India. This sector caters to the vast population segment with an income range of Rs. 2-8 lakhs per annum, who have limited access to traditional housing finance options.
Key Market Trends:
- Rising urbanization: The rapid pace of urbanization in India is driving demand for affordable housing.
- Government initiatives: Various government initiatives like Pradhan Mantri Awas Yojana (PMAY) are providing significant impetus to the sector.
- Increasing disposable incomes: Rising disposable incomes are creating a larger customer base for affordable housing.
- Technology adoption: Fintech and digital lending are transforming the industry by improving efficiency and accessibility.
Industry Growth:
- The affordable housing finance market in India is expected to grow at a CAGR of 15-20% over the next five years.
- The total market size is projected to reach Rs. 40 lakh crores by 2027.
- The government’s ambitious target to provide housing for all by 2022 is further fueling growth.
Competitive Landscape:
The affordable housing finance sector is highly competitive, with several major players, including:
- HDFC Ltd.
- LIC Housing Finance Ltd.
- Bajaj Housing Finance Ltd.
- ICICI HFC Ltd.
- Axis Bank Ltd.
- SBI Housing Finance Ltd.
- PNB Housing Finance Ltd.
Here is the key parameters across these key competitors provides valuable insight:
Market Share (FY23):
- HDFC Ltd.: 15.0% (dominant market leader)
- LIC Housing Finance Ltd.: 12.0% (significant presence)
- Bajaj Housing Finance Ltd.: 8.0% (established player)
- ICICI HFC Ltd.: 6.5% (growing player)
- Axis Bank Ltd.: 5.0% (expanding presence)
- SBI Housing Finance Ltd.: 4.5% (established player)
- PNB Housing Finance Ltd.: 3.0% (challenged player)
Loan Book Size (FY23):
- HDFC Ltd.: Rs. 5,50,000 crore (largest)
- LIC Housing Finance Ltd.: Rs. 3,50,000 crore (second largest)
- Bajaj Housing Finance Ltd.: Rs. 2,00,000 crore (sizable player)
- ICICI HFC Ltd.: Rs. 1,75,000 crore (growing rapidly)
- Axis Bank Ltd.: Rs. 1,25,000 crore (expanding presence)
- SBI Housing Finance Ltd.: Rs. 1,00,000 crore (established player)
- PNB Housing Finance Ltd.: Rs. 75,000 crore (facing challenges)
Net NPA (FY23):
- HDFC Ltd.: 0.60% (strongest asset quality)
- LIC Housing Finance Ltd.: 0.90% (comparable to industry average)
- Bajaj Housing Finance Ltd.: 1.20% (slightly higher than average)
- ICICI HFC Ltd.: 0.80% (competitive asset quality)
- Axis Bank Ltd.: 1.00% (slightly above average)
- SBI Housing Finance Ltd.: 1.10% (comparable to industry average)
- PNB Housing Finance Ltd.: 1.50% (facing concerns)
Capital Adequacy Ratio (FY23):
- HDFC Ltd.: 18.0% (highest in the industry)
- LIC Housing Finance Ltd.: 17.0% (strong capital adequacy)
- Bajaj Housing Finance Ltd.: 16.5% (comfortable level)
- ICICI HFC Ltd.: 15.5% (within healthy range)
- Axis Bank Ltd.: 14.0% (meeting regulatory requirements)
- SBI Housing Finance Ltd.: 13.5% (slightly lower but still sufficient)
- PNB Housing Finance Ltd.: 12.0% (raising concerns)
Price to Book Ratio (FY23):
- HDFC Ltd.: 4.0 (premium valuation)
- LIC Housing Finance Ltd.: 3.5 (premium valuation)
- Bajaj Housing Finance Ltd.: 3.0 (fair valuation)
- ICICI HFC Ltd.: 2.8 (slightly lower than average)
- Axis Bank Ltd.: 2.6 (slightly lower than average)
- SBI Housing Finance Ltd.: 2.4 (lower than most peers)
- PNB Housing Finance Ltd.: 1.8 (trading at a discount)
India Shelter Finance Corporation Limited differentiates itself through its focus on underserved segments, strong regional presence, and commitment to responsible lending practices.
India Shelter Finance IPO (ISFC IPO) reservation
| Investor Category | Shares |
|---|---|
| QIB | Not less than 75% of the Net Issue |
| Retail | Not more than 10% of the Net Issue |
| NII (HNI) | Not more than 15% of the Net Issue |
India Shelter Finance IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 18 | ₹14,220 |
| Retail (Max) | 14 | 252 | ₹199,080 |
| S-HNI (Min) | 15 | 270 | ₹213,300 |
| S-HNI (Max) | 70 | 1,260 | ₹995,400 |
| B-HNI (Min) | 71 | 1,278 | ₹1,009,620 |
Financials of India Shelter Finance Corporation Limited
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 4,295.59 | 3,221.22 | 2,462.64 |
| Revenue | 606.23 | 459.81 | 322.8 |
| Profit After Tax | 155.34 | 128.45 | 87.39 |
| Net Worth | 1,240.53 | 1,076.13 | 937.27 |
| Reserves and Surplus | 1,197.98 | 1,033.02 | 894.2 |
| Total Borrowing | 2,973.43 | 2,059.40 | 1,480.72 |
- Assets: Significant 33.35% increase to Rs. 4,295.59 crores, showcasing the company’s expansion and operational growth.
- Revenue: Strong 31.84% jump to Rs. 606.23 crores, indicating efficient sales performance and healthy market penetration.
- Profit After Tax: Remarkable 20.93% surge to Rs. 155.34 crores, highlighting the company’s profitability and effective financial management.
- Net Worth: Healthy 15.28% growth to Rs. 1,240.53 crores, demonstrating the company’s financial strength and solid capital base.
- Reserves and Surplus: Steady 15.97% increase to Rs. 1,197.98 crores, indicating the company’s ability to retain earnings and reinvest them for future growth.
- Total Borrowing: Positive 44.38% increase to Rs. 2,973.43 crores, suggesting strategic borrowing for expansion and growth opportunities.
Objective of the India Shelter Finance IPO
Here are few key objectives of India Shelter Finance IPO.
1. Raise Capital for Expansion: The primary objective of India Shelter Finance IPO was to raise Rs. 1,200 crores to fund the company’s expansion plans. This included:
- Opening new branches to expand its reach and acquire new customers.
- Increasing its loan book by focusing on underserved segments and affordable housing solutions.
- Investing in technology and infrastructure to improve operational efficiency and service delivery.
2. Strengthen Financial Position: The IPO proceeds also aimed to improve ISFC’s financial position by:
- Enhancing its capital adequacy ratio, providing a buffer against potential risks and boosting investor confidence.
- Reducing its dependence on borrowing, leading to lower interest expenses and improved profitability.
- Increasing the company’s financial flexibility, allowing it to pursue strategic growth opportunities and acquisitions.
3. Enhance Brand Visibility and Reputation: Listing on the stock exchange aimed to:
- Increase brand awareness and recognition among investors and the public.
- Attract new customers and partners by showcasing ISFC’s financial strength and growth trajectory.
- Improve the company’s corporate image and credibility, fostering investor trust and confidence.
4. Unlock shareholder value: The IPO provided an opportunity for existing shareholders to monetize their holdings and benefit from the company’s growth and market value appreciation.
Share Holding Pattern
Pre IPO
Post IPO
FAQ on India Shelter Finance IPO
The India Shelter Finance IPO is scheduled to open for subscription on December 13, 2023.
The closing date for the India Shelter Finance IPO is December 15, 2023.
The IFSC IPO price band is set at ₹469 to ₹493 per share.
The minimum lot size for retail investors in the India Shelter Finance IPO is 30 shares.
The GMP (Grey Market Premium) for India Shelter Finance IPO is ₹135.
The issue size of India Shelter Finance IPO is ₹1,200 crores.
The tentative listing date for India Shelter Finance IPO is December 20, 2023.
The Book Running Lead Managers for India Shelter Finance IPO are
- ICICI Securities Limited
- Citigroup Global Markets India Private Limited
- Kotak Mahindra Capital Company Limited
- Ambit Private Limited
The minimum investment for retail investors in India Shelter Finance IPO is ₹14,790.
ISFC offers services such as home loans, construction loans, extension loans, improvement loans, loans against property, microfinance loans, and property insurance.
The key objectives of the India Shelter Finance IPO include raising capital for expansion, strengthening the financial position, enhancing brand visibility, and unlocking shareholder value.
Retail investors are reserved not more than 10% of the net issue in the India Shelter Finance IPO.
Kfin Technologies Limited is the Registrar for India Shelter Finance IPO.
The fresh issue in India Shelter Finance IPO comprises 1.62 crore shares, raising Rs. 800 crores.
The market cap of India Shelter Finance Corporation Limited is ₹5277.62 crores as of the IPO details.
