The company changed its name from “Satyaprakash Housing Finance India Limited” to “India Shelter Finance Corporation Limited” after getting a certificate from the National Housing Bank (NHB) to operate as a housing finance institution without accepting public deposits. The company offers low-interest housing loans to retail consumers in Tier II and Tier III cities. The company boasts a large distribution network, a scalable IT infrastructure, and a retail-oriented approach to affordable housing financing. During the period 2021–2023, its assets under management (AUM) increased at a CAGR of 40.8%.
The organization targets self-employed clients, with a focus on first-time home loan applicants in India’s Tier II and Tier III cities with low and middle incomes. This method assists the company in attaining relatively high advance yields. The yield on advances for FY 2023 was 14.9%, the second highest in India for such a period. The group is well-represented in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat, with 183 well-established branches distributed throughout 15 states. The company participates in the retail credit market, which is
expected to grow at a CAGR of 13–15% between 2023 and 2025. The sector would be primarily supported by an increase in private consumption with a sustained rise in GDP growth, a shift in consumer attitudes towards debt, and the tendency toward urbanization, among other things.
India Shelter Finance Corporation Limited, IPO Date
- Retail investors can bid for the India Shelter Finance Corporation Limited IPO. The issue date has not been announced yet.
India Shelter Finance Corporation Limited, IPO Price Band
- India Shelter Finance Corporation Limited is a fresh-issue IPO of ₹1,000 crore and an offer for sale of ₹800 crore. It is a book-building issue. The price range has not been announced yet.
India Shelter Finance Corporation Limited, IPO Lot Size
- The lot size and minimum investment for the India Shelter Finance Corporation Limited IPO will be announced later.
India Shelter Finance Corporation Limited IPO Objectives
The objectives of the India Shelter Finance Corporation Limited IPO are listed below:
- To meet future capital requirements for onward lending.
- For general corporate purposes.
Peer Details
As per DRHP, there are three listed peers whose business portfolio is comparable to the company:
- Aptus Value Housing Finance India Limited
- Aavas Financiers Limited
- Home First Finance Company, India Limited
India Shelter Finance Corporation Ltd Company Financials
| Particulars | Year ending on March 31, 2023 ( ₹ Million ) | Year ending on March 31, 2022 ( ₹ Million ) | Year ending on March 31, 2021 ( ₹ Million ) |
|---|---|---|---|
| Total Income | 6,062.31 | 4,598.06 | 3,227.99 |
| Profit After Tax (PAT) | 1,553.42 | 1,284.47 | 873.89 |
| AUM | 43,594.31 | 30,732.93 | 21,985.27 |
| Disbursements | 19,643.77 | 12,952.61 | 8,948.76 |
| Average Yield on Loan – Principal Outstanding | 14.6% | 14.9% | 14.4% |
Strengths
- The company holds the fastest-growing assets under management among housing finance companies in India, which is likely to be backed by rising urbanization, growing disposable income, and favorable demographics.
- The company has a significant presence in Tier II and Tier III cities, which helps the business run a vast and diverse physical distribution network. The organization has adopted a strategy of penetrative expansion across India by focusing on serving low- and middle-income people.
- The company plans to grow and diversify its distribution network to achieve deeper penetration in key states and generate sustainable growth. This will be supported by the expansion of branches in existing areas as well as the expanding size and scale of the Indian housing industry.
- The company is focused on diversifying its borrowing profile, optimizing borrowing costs, and maintaining a positive Asset Liability Management (ALM) position.
Risks
- The company operates a highly capital-intensive business, which requires ample funds to run its operations smoothly. Any disruption in the sources of financing may harm its operational and financial performance.
- The AUM for FY 2023 was mostly generated by three states, indicating a high dependency on the corporation. Any negative events in these states could have a negative impact on its operations.
- The company is exposed to risks arising from default on loans as it primarily serves low- and middle-income clients. This could affect the financial position of the business in a significant way.
- The company’s operations could be impacted by the volatility in interest rates for both its lending and treasury operations. As a result, the net interest income would be impacted and affect its profitability.
India Shelter Finance Corporation Ltd IPO FAQs:
Q1. What is India Shelter Finance Corporation Limited’s IPO?
Ans. India Shelter Finance Corporation Limited is a fresh issue of ₹1,000 crore and an offer for the sale of ₹800 crore. It is a book-building issue.
Q2. When will India Shelter Finance Corporation Limited’s IPO be allotted?
Ans. The basis of allotment will be on a date that has not been announced yet.
Q3. When will India Shelter Finance Corporation Limited’s IPO open for subscription?
Ans. The IPO subscription window will open on a date that has not been announced yet.
Q4. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot, which is a size that has not been announced yet.
Q5. When will India Shelter Finance Corporation Limited list on exchanges?
Ans. India Shelter Finance Corporation Limited IPO will be listed on BSE and NSE. The date of listing has not been announced yet.
Q6. What would be the listing gains on the India Shelter Finance Corporation Limited IPO?
Ans. Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.
Q7. I have finished the application process for the India Shelter Finance Corporation Limited IPO, but the funds still need to be debited. What is the reason?
Ans. Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.
Q8. How do I approve the UPI mandate request for India Shelter Finance Corporation Limited’s IPO?
Ans. You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
Q9. Can I submit more than one application for the public issue of India Shelter Finance Corporation Limited using one PAN?
Ans. You can submit only one application using your PAN card.
