India Shelter Finance lists at a 26% premium at Rs. 620 per share on the NSE

India Shelter Finance Corporation Limited, previously known as Satyaprakash Housing Finance India Limited, specializes in housing finance and debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 612.70 per share, reflecting an impressive 24.28% premium compared to the final issue price of Rs 493 per share. On the other hand, the stock was listed at Rs 620 per share with a premium of 25.76% on the NSE. The current market capitalisation of the company stands at Rs 6,559 crore on the BSE.

IPO Proceeds

The net proceeds from the issue will be directed toward several objectives. Firstly, to meet future capital requirements for onward lending. Secondly, for general corporate purposes.

Company profile:

India Shelter Finance Corporation Limited, previously known as Satyaprakash Housing Finance India Limited, specializes in housing finance. The company provides loans for house construction, extension, renovation, and the purchase of new homes or plots. Additionally, the company offers loans against property (LAP). The company was incorporated in 1998.

India Shelter offers loan amounts ranging from Rs 5 Lakhs to Rs 50 Lakhs for a tenure of up to 20 years. As of November 30, 2023, it has disbursed over Rs 5500 Crores in loans, facilitating families to own, extend, or improve their homes. As of September 30, 2023, the company operates a network of 203 branches spanning across 15 states. Its presence extends to Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.

Subscription details:

On December 15, 2023, the final day of the IPO window, the IPO witnessed an impressive response, especially when compared to other IPOs recently listed, with a subscription rate of 38.59 times. The public issue received remarkable interest, with the retail category being subscribed 10.46 times, the QIB category achieving a subscription rate of 94.29 times, and the NII category reaching a subscription rate of 29.97 times.

The company attracted Rs 360 crore from various anchor investors by allocating 73.02 lakh equity shares at Rs 493 per share. The complete lock-in period for these anchor investors ends on April 23, 2024. The IPO price range was set between Rs 469 and Rs 493, with a face value of Rs 5 per share and a lot size of 30 shares. The total size of the company’s IPO was Rs 1200 crore, and the final share issue price was fixed at Rs 493 each.

Financial Performance:

Conclusion:

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have already gained an impressive 26% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.