India Shelter Finance IPO: Shares Debut At 26% Premium Over Issue Price

The initial share offer included a fresh issue of up to Rs 800 crore and an offer-for-sale (OFS) of up to Rs 400 crore. It was priced in the range of Rs 469 to Rs 493 apiece

India Shelter Finance Corporation Ltd marked its debut on Wednesday at a premium of almost 26 per cent against the issue price of Rs 493. The firm’s shares debuted at Rs 612.70 apiece, gaining 24.3 per cent against the issue price of the stock on the BSE. 

While on NSE, the firm’s shares debuted at Rs 620 apiece, marking a premium of 25.7 per cent over the issue price. The firm’s market valuation touched Rs 6,236.26 crore during the morning trade, reported PTI. As of 11:56 AM, the shares were trading around Rs 564 on both exchanges.

During the initial public offer (IPO) of the firm, the issue received 36.62 times subscriptions on the last day of the offer on Friday. The initial share offer included a fresh issue of up to Rs 800 crore and an offer-for-sale (OFS) of up to Rs 400 crore. The issue was priced in the range of Rs 469 to Rs 493 apiece and was open for subscription from December 13 to 15.

Earlier, the company informed that the funds raised from the issue would be utilised to cater to the future capital requirements towards onward lending and for general corporate purposes. 

Before the IPO, the firm garnered Rs 360 crore from anchor investors. Goldman Sachs Funds, ICICI Prudential Mutual Fund (MF), Kotak Mahindra MF, UTI MF, Nippon India MF, Quant MF, Edelweiss MF, Bandhan MF, Tata MF, ICICI Prudential Life Insurance Company Ltd, SBI Life Insurance Co Ltd, and Max Life Insurance Company were among the anchor investors for the company.

India Shelter Finance is a firm that focuses on providing finance for affordable housing and has a distribution network and technology infrastructure. The company targets self-employed individuals who tend to be first-time home loan buyers and belong to low and middle-income groups in Tier-II and Tier-III cities in India.