Overview of India Shelter Finance Corporation Limited IPO
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| India Shelter Finance IPO |
India Shelter Finance Corporation Limited IPO is an upcoming opportunity for investors to participate in the growth of a retail-focused affordable housing finance company. With a strong focus on first-time home loan takers in Tier II and Tier III cities in India, India Shelter Finance aims to provide financial assistance to the low and middle-income group. In this article, I will provide an overview of the IPO, highlighting key information and steps to apply, and explain how to check the allotment status.
Introduction to India Shelter Finance IPO,
India Shelter Finance Corporation Limited is launching its IPO, which opens for subscription on 13th December and will close on 15th December 2023. It is a company incorporated in 1998 that primarily focuses on providing affordable housing loans to self-employed customers. Their target market includes individuals looking to purchase or construct residential properties for the first time. With a branch network spanning across 15 states in India, India Shelter Finance has established a strong presence in states like Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.
Company Background and Focus on Affordable Housing Finance
As of September 30, 2023, India Shelter Finance Corporation Limited operated through 203 branches across the country. Their branch vintage is five years and above in states where they have a significant presence. The company's core focus is on financing the purchase and self-construction of residential properties through home loans. Additionally, they also offer loans against property.
In terms of their customer base, 70.7% of their customers are first-time home loan takers, indicating their commitment to supporting individuals in making their dream of homeownership a reality. India Shelter Finance Corporation Limited primarily focuses on the low and middle-income group, catering to the affordable housing segment with ticket sizes lower than ₹25 lakhs.
Growth and Performance Highlights
Between FY 2021 and 2023, India Shelter Finance Corporation Limited witnessed a two-year compound annual growth rate (CAGR) of 40.8% in terms of assets under management (AUM). This growth highlights the company's ability to effectively serve its target market and expand its operations.
Financially, the company has shown consistent growth over the years. According to the financials reported, their total assets increased from ₹2,462.64 crores as of March 31, 2021, to ₹4,295.59 crores as of March 31, 2023. Similarly, the total revenue and profit after tax also exhibited a positive trend. These figures demonstrate the company's ability to generate revenue and maintain profitability.
Key Information about India Shelter Finance IPO
The India Shelter Finance IPO has an issue size of ₹1200 crores. This includes a fresh equity issue worth ₹800 crores and an offer for sale (OFS) worth ₹400 crores from the existing shareholders. This combination ensures a mix of capital infusion and liquidity for the company.
In terms of the company's financial performance, let's take a look at the figures for the past three financial years:
Financial Year Total Assets Total Revenue Profit After Tax EPS March 31, 2021 2,462.64 322.80 87.39 10.19 March 31, 2022 3,221.22 459.81 128.45 14.80 March 31, 2023 4,295.59 606.23 155.34 17.75
These figures demonstrate the company's consistent growth in terms of total assets, revenue, and profitability. The increasing EPS indicates the potential for enhanced returns for investors.
Schedule and Timeline of the India Shelter Finance Corporation Limited IPO
The India Shelter Finance Corporation Limited IPO is scheduled from 13th December to 15th December 2023. During this period, interested investors can subscribe to the IPO. Here is the timeline of events related to the IPO:
13th December to 15th December 2023: Issue Period
Until 5 PM on the issue closing day: Deadline for accepting UPI mandate
December 18, 2023: Finalization of Allotment
December 19, 2023: Initiation of Refunds and Credit of Shares
December 20, 2023: Date of Listing
December 30, 2023: Mandate end date
January 15, 2024: Anchor Investors Lock-In End Date (50% of the investment)
March 15, 2024: Anchor Investors Lock-In End Date (Remaining investment)
Investors should take note of these dates and ensure they complete the necessary steps within the specified timelines.
How to Apply for India Shelter Finance IPO
To apply for the India Shelter Finance Corporation Limited IPO, investors can follow a simple process using a supported UPI app. Here are the steps:
Enter your bid on the Kite platform provided by Zerodha, a renowned brokerage firm.
Accept the UPI mandate on your phone.
Upon acceptance of the mandate, the bid amount will be blocked in your bank account. This ensures that the required funds are available for the IPO subscription. It is important to note that investors should have a Zerodha account or create one to apply for the IPO. Zerodha provides a seamless and user-friendly platform for IPO subscriptions.
For further assistance and details on the application process, investors can refer to the resources provided on the Zerodha website or contact their customer support.
Checking Allotment Status for India Shelter Finance IPO
After applying for the India Shelter Finance Corporation Limited IPO, investors can check their allotment status through various methods. Here are two commonly used methods:
Registrar and Transfer Agent website: Investors can visit the website of the Registrar and Transfer agent and enter the required details to check their allotment status. The website usually provides an easy-to-use interface, enabling investors to access their allotment information.
NSE website: Alternatively, investors can also check the allotment status on the NSE (National Stock Exchange) website. The NSE website offers a dedicated section to verify IPO bids and check allotment status.
Both these methods provide a convenient way for investors to stay updated on the status of their IPO application and allotment.
In conclusion, the India Shelter Finance Corporation Limited IPO presents an opportunity for investors to participate in the growth of a retail-focused affordable housing finance company. With its focus on first-time home loan takers in Tier II and Tier III cities, the company has demonstrated consistent growth and aims to provide financial assistance to individuals in the low and middle-income group. By following the steps outlined above, investors can apply for the IPO and stay informed about the allotment status.
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