- Price Band fixed at ₹469 to ₹493 per Equity Share of face value of ₹5 each
- Bid or Offer will open on Wednesday, December 13, 2023 and close on Friday, December 15, 2023
- The Anchor Investor Bidding Data Shall be Tuesday, December 12, 2023
- Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter
- The IP consists of a fresh issunace of shares worth 800 crore by the company and an offer-for-sale of 400 crore worthshares by the existing shareholders
- It has a healthy credit rating of ICRA A+ (stable) from ICRA Limited and CARE A+ (Positive) from CARE Limited, as of September 30, 2023.
NE BUSINESS BUREAU
AHMEDABAD, DEC 11
WestBridge Capital and Nexus Venture Partners backed India Shelter Finance Corporation Limited, a retail focused affordable housing finance company, on Monday announced it will float the maiden public issue for subscription on Wednesday, December 13, 2023.
The total offer size of Equity Shares of face value ₹ 5 each aggregating up to ₹1,200 crore comprises fresh issue aggregating up to ₹800 crore and Offer for Sale (OFS) aggregating up to ₹400 crore by existing shareholders.
The price band of the offer has been fixed at ₹469 to ₹493 per equity share. Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter.
The Anchor Investor Bidding Date shall be Tuesday, December 12, 2023. The Bid/Offer will open on Wednesday, December 13, 2023 for subscription and will close on Friday, December 15, 2023.
The Company proposes to utilise net proceeds from fresh issue of Equity Shares to meet future capital requirements towards lending estimated to ₹640 crore and balance amount towards general corporate purpose.
Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund), and Nexus Ventures III are the biggest selling shareholders in the OFS, offloading ₹171.3 crore and ₹142.5 crore shares. 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.
Rupinder Singh, Managing Director and Chief Executive Officer, said, “Gujarat contributes 7 percent of its business through its 13 branches while Rajasthan a lion’s share of over 37 percent.”
The firm will use the net fresh issue proceeds for meeting its future capital requirements for lending, which is amounted to ₹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 ₹14,790 for 30 shares (one lot), and their maximum investment will be ₹1,92,270 for 390 shares (13 lots).
India Shelter Finance integrates advanced technology and analytics throughout its operations, enhancing every stage of the customer lifecycle. This integration spans from on-boarding and underwriting to asset quality monitoring, collections, and customer services. The company has seen a significant CAGR growth of 40.8% between FY 2021 and FY 2023 in assets under management. The AUM was ₹ 51,80.689 cr as of H1FY24. A notable aspect of India Shelter Finance Corporation is its emphasis on empowering women in financial matters. As of September 30, 2023, 97.9% of its loans included women as borrowers.
As of September 30, 2023, the Company obtained long-term funding from a diversified lender base comprising over 37 counterparties, including 24 scheduled commercial banks. It has a healthy credit rating of ICRA A+ (stable) from ICRA Limited and CARE A+ (Positive) from CARE Limited, as of September 30, 2023.
The Company has a professional and experienced management team with experience in the banking and finance sectors. Rupinder Singh, Managing Director and Chief Executive Officer, has extensive experience in mortgage financing. Anil Mehta, is Individual Promoter and WestBridge Crossover Fund, LLC and Aravali Investment Holdings are Corporate Promoters, and other Shareholders include Nexus Ventures III, Ltd., MIO Starrock and Madison India Opportunities IV (Madison India Capital).
ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Ambit Private Limited are the Book Running Lead Managers to the offer.
