India Shelter Finance Corporation
Book Building issueMainboard₹1,200 Cr issue
+24.28%
Listing gain over issue price
Issue size
₹1,200 Cr
1 lot at cut-off
₹14,790
Lot size
30shares
Open
13 Dec 2023
Close
15 Dec 2023
Allotment
18 Dec 2023
Listing
20 Dec 2023
Listing performance
Issue price
₹493
Listed at
₹612.70
Listing-day close
₹544.70
Latest price
₹613.35
Close on 23 Oct 2026
Listing gain
+24.28%
Return since issue
+24.41%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Dec 2023 – 15 Dec 2023
- Listing date
- 20 Dec 2023
- Face value
- ₹5 per share
- Issue price
- ₹493 per share
- Lot size
- 30 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,200 Cr
- Market cap at offer price
- ₹5,278 Cr
- Promoter holding
- 56.75% → 48.17% pre-issue → post-issue
- ISIN
- INE922K01024
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- 6 th Floor, Plot No.15, Sector 44, Institutional Area, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 73,02,229 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 30 shares per lot, in multiples, at ₹493
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 30 | ₹14,790 |
| Retail (max) | 13 | 390 | ₹1,92,270 |
| S-HNI (min) | 14 | 420 | ₹2,07,060 |
| S-HNI (max) | 67 | 2,010 | ₹9,90,930 |
| B-HNI (min) | 68 | 2,040 | ₹10,05,720 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
73,02,229
Anchor portion
₹360 Cr
at ₹493 per share
Valuation and performance
Valuation at offer price
₹493 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 17.47 | — |
| P/E (×) | 28.22 | — |
| Market cap | — | ₹5,278 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 13.40%
- Debt / equity
- 2.12
- NAV per share
- ₹141.38
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About India Shelter Finance Corporation
India Shelter Finance Corporation Limited was incorporated on October 26, 1998, as 'Satyaprakash Housing Finance India Limited' and renamed in 2010. The company operates as a non-deposit-taking housing finance company registered with the National Housing Bank. It serves as a retail-focused affordable housing finance provider with an extensive distribution network comprising 203 branches as of September 30, 2023. The company's target segment is self-employed customers, particularly first-time home loan takers in low and middle-income groups in Tier II and Tier III cities. Between Financial Year 2021 and 2023, the company achieved a two-year CAGR of 40.8% in assets under management. The company generates revenue primarily through interest income on home loans and loans against property, with assets under management of ₹51,806.89 million as of September 30, 2023.
Company Analysis
from RHPIndia Shelter Finance Corporation Limited is a retail-focused affordable housing finance company providing home loans and loans against property primarily to self-employed customers in low and middle-income groups in Tier II and Tier III cities across India.
India Shelter Finance Corporation Limited was incorporated on October 26, 1998, as 'Satyaprakash Housing Finance India Limited' and renamed in 2010. The company operates as a non-deposit-taking housing finance company registered with the National Housing Bank. It serves as a retail-focused affordable housing finance provider with an extensive distribution network comprising 203 branches as of September 30, 2023. The company's target segment is self-employed customers, particularly first-time home loan takers in low and middle-income groups in Tier II and Tier III cities. Between Financial Year 2021 and 2023, the company achieved a two-year CAGR of 40.8% in assets under management. The company generates revenue primarily through interest income on home loans and loans against property, with assets under management of ₹51,806.89 million as of September 30, 2023.
housing financeretail financefinancial services
Objects of the Issue
- To meet future capital requirements towards onward lending ₹6,400.00 million p.24
- General corporate purposes ₹1,109.16 million p.24
- Meeting future capital requirements towards onward lending and for general corporate purposes ₹8,000 million (Fresh Issue proceeds) p.71
- To meet future capital requirements towards onward lending ₹6,400.00 million p.138
- General corporate purposes ₹1,109.16 million p.141
Issue Structure
- Total Issue
- ₹12,000 million (24,340,768 Equity Shares of face value of ₹5 each)
- Fresh Issue
- ₹8,000 million (16,227,180 Equity Shares of face value of ₹5 each)
- Offer for Sale
- ₹4,000 million (8,113,588 Equity Shares of face value of ₹5 each)
- Price Band
- ₹469 to ₹493 per Equity Share
- Lot Size
- 30 Equity Shares (Bid Lot)
- Face Value
- ₹5 each
Business Model
The company earns revenue primarily from interest income on home loans and loans against property extended to retail customers. Revenue is also generated from prepayment charges, treasury operations, and other financial services. The company finances its lending through multiple sources including refinancing from the National Housing Bank, term loans, issuance of non-convertible debentures, securitizations, direct assignment of loan pools, and external commercial borrowings. As of September 30, 2023, total outstanding borrowings were ₹32,724.77 million.
Business Segments
Provides home loans to individuals, particularly first-time home buyers in low and middle-income groups
Provides loans against the security of property owned by customers
Provides housing loans to low and middle-income self-employed customers, with primary focus on first-time home loan takers in Tier II and Tier III cities
Assigns and securitizes a portion of loan receivables from the loan portfolio to banks and other financial institutions
Housing loans provided to customers for residential property purchases
Loans against property provided to customers for various purposes using property as collateral
Provides affordable housing loans to self-employed and salaried customers with focus on first-time home loan takers in low and middle income groups in Tier II and Tier III cities, with loan ticket size lower than ₹2.5 million
Provides secured loans against residential or commercial property mortgage, primarily to self-employed individuals for business or personal purposes
Provides home loans for internal or external repairs to existing homes, upgradation of existing homes (including addition of rooms and floors), self-construction, plot purchase and purchase of property
Provides secured loans disbursed with an identified property mortgaged as collateral. Loans against property primarily include self-occupied residential properties.
Secured retail home loans provided to borrowers for home purchase, home improvements, home extension and construction of dwelling units on plots owned by borrowers
Secured loans against property provided to borrowers, which are equity loans
Provides mortgage-based housing loans to low and middle-income individuals
Provides non-housing loans secured by property mortgage to individuals
Provision of affordable housing loans to self-employed customers with a focus on first time home loan takers in the low and middle income group in Tier II and Tier III cities. The company also provides loans against property.
SWOT Analysis
Strengths
- • Retail-focused affordable housing finance with extensive distribution network(p.23)
- • Strong AUM growth trajectory from FY2021 to FY2023(p.23)
- • Target segment of self-employed customers with high yields on advances(p.23)
- • Strong profitability with improved GNPA metrics(p.39)
- • Extensive use of technology across customer lifecycle(p.47)
- • Strategy to leverage technology for scalability and efficiency(p.47)
- • Strong loan growth with 2-year AUM CAGR of 40.8% (FY21-23)(p.235)
- • High yield on advances (14.9% in FY23), 3rd highest in India(p.236)
- • Extensive distribution network with 203 branches across 15 states(p.236)
- • Superior asset quality with GNPA of 1.00% as of Sept 30, 2023(p.236)
- • Strong digital adoption with 92.4% collections via digital modes (H1 FY24)(p.236)
- • Conservative LTV policy at 50.9% maintains collateral safety(p.236)
- • Presence in states covering 94% of affordable housing finance market(p.236)
- • In-house end-to-end operations from customer acquisition to collections(p.236)
- • One of fastest growing housing finance companies in India with strong AUM growth(p.239)
- • Healthy credit ratings demonstrating financial stability(p.237)
- • High-yield focused lending with granular retail portfolio concentrated on first-time home buyers(p.239)
- • Strong underwriting capabilities with proprietary business rule engine and risk management systems(p.244)
- • Demonstrated ability to reduce borrowing costs despite rising interest rate environment(p.247)
- • In-house origination model providing operational control and pricing power(p.241)
- • Technology-driven platform enabling scalability and operational efficiency(p.243)
- • Diversified funding profile with access to multiple borrowing sources(p.249)
- • Strong Board composition with multiple independent directors(p.292)
- • Established corporate governance framework with multiple committees overseeing operations(p.293)
- • Experienced management team with tenure and specialized roles(p.304)
- • Robust borrowing authorization structure(p.292)
- • Secured mortgage-backed lending model with strong collateral protection(p.359)
- • Diversified funding sources reducing reliance on single source(p.370)
- • Strong capital adequacy ratios exceeding regulatory minimums(p.383)
- • Established credit risk assessment framework with vintage analysis methodology(p.360)
- • Dominant market position with highest yield on advances in affordable housing segment(p.400)
- • Strong asset quality with improving GNPA ratios and low delinquency(p.400)
- • Significant growth momentum in assets under management with 40.8% CAGR(p.400)
- • Extensive distribution network enabling market penetration(p.400)
- • Technology-driven scalable operating model(p.404)
- • Improved credit ratings reflecting financial strength(p.401)
Weaknesses
- • Dependence on few states for significant AUM concentration(p.38)
- • High leverage with debt to equity ratio increasing(p.34)
- • Negative operating cash flows requiring financing activities(p.45)
- • Regulatory compliance deficiencies identified by NHB in past inspections(p.43)
- • Portfolio concentration risk in high-risk segments(p.36)
- • Potential vulnerability of IT systems to breakdowns and security breaches(p.47)
- • Dependence on third-party IT service providers with non-exclusive arrangements(p.47)
- • Data security vulnerabilities including employee inexperience(p.47)
- • Lack of duly registered and adequately stamped lease agreements for several branch offices(p.48)
- • Internal control deficiencies identified by NHB(p.48)
- • History of fraud and employee negligence losses(p.48)
- • Significant reliance on lending to high-risk self-employed customers(p.49)
- • CRAR exceeds regulatory requirements, limiting capital deployment(p.50)
- • Past regulatory filing delays and non-compliance instances(p.51)
- • Concentration of promoter shareholding post-IPO(p.70)
- • High employee attrition rates(p.61)
- • Higher credit costs (0.4%) vs peers like Aavas (0.1%)(p.230)
- • Strong portfolio concentration in top 5 states at 76% as of H1 FY24(p.231)
- • Smaller scale vs peers—AUM of ₹51.8bn is below Aadhar (₹179bn)(p.225)
- • Limited access to debt capital markets—high reliance on term loans (94%)(p.228)
- • Lower ROA (4.1%) vs Aptus (7.8%) and Vastu (5.4%) in FY23(p.229)
- • High leverage relative to net owned funds with borrowing restrictions(p.269)
- • Dependent on specialized market segment with geographic concentration in Tier II and Tier III cities(p.248)
- • Concentration risk with self-employed customer base representing 70.6% of AUM(p.239)
- • Limited collateral value protection with average loan-to-value ratios of 55.1% and 45.3% for home loans and loans against property(p.239)
- • Dependence on key management personnel with limited succession planning disclosure(p.265)
- • Significant board turnover and frequent director changes(p.292)
- • Dependence on concentrated promoter ownership(p.308)
- • High leverage with significant borrowing obligations(p.323)
- • No formal dividend policy established(p.316)
- • High concentration risk with top 10 borrowings representing 67.31% of total borrowings(p.389)
- • Increasing impairment allowances reflecting credit quality concerns(p.359)
- • Stage 3 (credit-impaired) assets of Rs. 439.27 million indicating asset quality deterioration(p.360)
- • High leverage with net debt to equity ratio of 2.39x(p.383)
- • High leverage with debt-to-equity ratio of 2.39x limiting financial flexibility(p.397)
- • High finance costs consuming over one-third of total income(p.417)
- • Significant dependence on borrowing sources with average cost of 8.9% constraining margins(p.402)
- • Concentration risk with subsidiary contributing minimal value(p.394)
- • Outstanding litigation risk with 764 cheque dishonor complaints(p.437)
Opportunities
- • Rapid growth in affordable housing finance market(p.23)
- • Strategy to expand distribution network in existing and new geographies(p.46)
- • Underserved first-time homebuyer segment in Tier II and III cities(p.23)
- • Diversification through separate subsidiary for loans against property(p.43)
- • Geographic expansion into new markets with focused strategy(p.47)
- • Focus on first-time home loan takers in Tier II and Tier III cities(p.49)
- • Growth in affordable housing market through government initiatives(p.74)
- • Affordable housing market to grow at 15-16% CAGR (FY23-26)(p.200)
- • Expansion in tier-II/III cities where penetration is low(p.235)
- • LAP portfolio (<₹2.5M) to grow at 18-20% CAGR (FY23-26)(p.220)
- • Housing shortage of 100M units; aggregate loan demand ₹58 trillion(p.184)
- • Mortgage penetration in India (12.3%) far below developed economies(p.185)
- • Favorable demographic dividend with median borrower age declining(p.189)
- • Government support via PMAY, NHB refinancing, PSL guidelines(p.197)
- • Expansion into Tier II and Tier III cities to leverage urban growth and housing finance penetration(p.248)
- • Increasing urbanization and rising housing demand in India(p.239)
- • Expansion of co-lending partnerships to increase lending capacity and market reach(p.247)
- • Geographic expansion across multiple Indian states to reduce concentration risk(p.248)
- • Leverage technology to enhance scalability and reduce operational costs(p.249)
- • Women-centric lending strategy aligned with financial inclusion objectives(p.250)
- • Rapid AUM growth trajectory with 43.3% growth in six months(p.317)
- • Expansion into new states and geographic diversification(p.332)
- • Strategic initiatives for capital deployment and IPO proceeds utilization(p.300)
- • Strong financial performance with increasing profitability(p.340)
- • Growing housing finance market with rising middle-income borrowers(p.387)
- • Expansion through co-lending partnerships with banks(p.359)
- • Diversification through securitization and assignment transactions(p.359)
- • Loan pipeline growth with sanctioned but undisbursed amount of Rs. 3,243.09 million(p.359)
- • Expansion into underserved Tier II and Tier III cities with growing middle-income populations(p.400)
- • Growing affordable housing market driven by government policy support(p.400)
- • Leverage technology stack to achieve scalability and improve efficiency(p.404)
- • Direct assignment and securitization arrangements to optimize capital deployment(p.428)
- • Rising demand for housing finance from increased incomes and financial incentives(p.404)
Threats
- • Dependence on continuous access to debt and refinancing sources(p.33)
- • High risk of credit defaults from low and middle-income customer base(p.36)
- • Regulatory changes and stricter compliance requirements(p.42)
- • Interest rate volatility affecting profitability(p.43)
- • Collateral value depreciation in real estate downturns(p.40)
- • Economic slowdown increasing delinquency rates(p.39)
- • Delays and litigation in collateral recovery processes(p.40)
- • Regulatory borrowing limits constraining growth(p.45)
- • Challenges in geographic expansion including local taxes and regulatory compliance(p.47)
- • State-level money-lending regulations with prescribed interest rate caps(p.47)
- • Potential data security breach penalties under DPDP Act 2023(p.47)
- • Lease termination risks for branch offices(p.48)
- • RBI and regulatory changes affecting assignment and securitization(p.49)
- • Conflicts of interest from promoter's investments in similar business(p.50)
- • Loan balance transfers and pre-closure reducing interest income(p.59)
- • Highly competitive housing finance industry(p.53)
- • Risks from cash collections including theft and fraud(p.55)
- • Dependence on third-party selling agents for customer sourcing(p.58)
- • Changes in government policy and tax incentives affecting housing finance(p.58)
- • COVID-19 pandemic and future communicable disease impacts(p.59)
- • Limitations in infrastructure in Tier II and Tier III cities(p.54)
- • Indian economy slowdown affecting business operations(p.73)
- • Inflation increases affecting operating costs and customer demand(p.74)
- • Rising repo rates increase cost of funds (6.5% as of Q1 FY24)(p.170)
- • Slowdown in overall housing loan growth from 13.5% to 13-15% CAGR (FY23-26)(p.191)
- • Intense competition from large HFCs and banks gaining affordable housing share(p.196)
- • Overall GNPA in housing market at 2.3%, small HFCs at 4.6%(p.198)
- • Economic slowdown risks; GDP growth projected at 6.0% for FY24(p.169)
- • Reliance on informal sector customers increases credit risk(p.188)
- • Regulatory risks—shift to RBI oversight, changing PSL norms(p.217)
- • Rising interest rate environment increasing borrowing costs and reducing customer affordability(p.237)
- • Regulatory restrictions on housing finance companies increasing compliance burden(p.271)
- • Highly competitive housing finance industry with multiple players including banks and NBFCs(p.264)
- • Credit risk from self-employed customer segment with irregular income patterns(p.257)
- • Economic cyclicality and potential downturn affecting customer repayment capacity in lower income segments(p.244)
- • Regulatory capital adequacy requirements limiting growth and leverage capacity(p.268)
- • Increasing stage 3 assets and credit risk exposure in prior periods(p.318)
- • Dependence on external borrowings and refinancing requirements(p.320)
- • Interest rate and spread compression risk from monetary policy changes(p.320)
- • Concentration risk in top states and borrower base(p.331)
- • Interest rate risk from variable rate borrowings of 75.9% of total(p.389)
- • Foreign currency exposure and potential rupee depreciation risk(p.389)
- • Regulatory changes in housing finance sector affecting operations(p.387)
- • Economic slowdown and income pressure on low and middle-income borrowers(p.380)
- • Interest rate volatility and RBI repo rate increases affecting cost of funds and spread compression(p.402)
- • Intense competition from larger HFCs, NBFCs and banks with superior funding access(p.404)
- • Economic slowdown impacting housing demand and customer repayment capacity(p.402)
- • Real estate price fluctuations and collateral value deterioration affecting recovery prospects(p.404)
- • Regulatory changes affecting capital adequacy, provisioning norms and lending restrictions(p.405)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anil Mehta | Individual Promoter | 1.7% | — |
| WestBridge Crossover Fund, LLC | Corporate Promoter | 23.8% | — |
| Aravali Investment Holdings | Corporate Promoter | 31.2% | — |
| WestBridge Crossover Fund, LLC | Promoter Group | — | — |
| Nexus Ventures III, Ltd. | Promoter Group | — | — |
| Madison (various trusts and funds) | Promoter Group | — | — |
| Anil Mehta | Individual Promoter | — | — |
| Anil Mehta | Individual Promoter | 1.7% | 1.5% |
| WestBridge Crossover Fund, LLC | Promoter | 23.8% | 20.2% |
| Aravali Investment Holdings | Promoter | 31.2% | 26.4% |
| Anil Mehta | Promoter | — | — |
| Anil Mehta | Individual Promoter | — | — |
| WestBridge Crossover Fund, LLC | Corporate Promoter | — | 54.9% (on a fully diluted basis) |
| Aravali Investment Holdings | Corporate Promoter (subsidiary of WestBridge Crossover Fund, LLC) | — | Part of 54.9% (on a fully diluted basis) |
| Anil Mehta | Individual Promoter | 51.0% | — |
| WestBridge Crossover Fund, LLC | Corporate Promoter | — | — |
| Aravali Investment Holdings | Corporate Promoter | — | — |
| WestBridge Crossover Fund, LLC | Promoter Group | 24.11% | — |
| Aravali Investment Holdings | Promoter Group | 31.57% | — |
| Anil Mehta | Promoter | 1.74% | — |
| Anil Mehta | Individual Promoter | — | — |
| WestBridge Crossover Fund, LLC | Corporate Promoter | — | — |
| Aravali Investment Holdings | Corporate Promoter | — | — |
Leadership
Sudhin Bhagwandas Choksey · Chairman
Rupinder Singh · Managing Director and Chief Executive Officer
Ashish Gupta · CFO
Mukti Chaplot · Company Secretary and Chief Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
India Shelter Finance Corporation IPO FAQs
What is the lot size of India Shelter Finance Corporation IPO?
The minimum lot size of India Shelter Finance Corporation IPO is 30 shares. One lot costs ₹14,790 at the cut-off price.
When does India Shelter Finance Corporation IPO open and close?
India Shelter Finance Corporation IPO opened for subscription on 13 Dec 2023 and closed on 15 Dec 2023.
What is the listing date of India Shelter Finance Corporation IPO?
India Shelter Finance Corporation IPO listed on 20 Dec 2023.