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The ₹1,200-crore initial public offering of India Shelter Finance Corporation was subscribed 1.48 times on the first day of bidding on December 13. The price band for the issue has been fixed at ₹469-493 a share. The market lot is 30 shares.
The IPO received bids for 2.65 crore shares as against an issue size of 1.79 crore shares.
The offer consists of a fresh issue of 1.62 crore shares worth ₹800 crore and an offer-for-sale of 81.13 lakh shares worth ₹400 crore. Catalyst Trusteeship (as trustee of Madison India Opportunities Trust Fund) and Nexus Ventures III are the selling shareholders in the OFS, offloading ₹171.3 crore and ₹142.5 crore worth of shares.
While retail investors portion was subscribed 1.89 times, quota for non-institutional investors received bids for 1.74 times and qualified institutional buyers (QIB) bought 0.57 times the allotted quota. The company had reserved 50 per cent of the offer size for qualified institutional buyers, 15 per cent for high net-worth individuals and the balance 35 per cent for retail investors.
As part of the IPO, the retail-focused affordable housing finance company raised ₹360 crore from anchor investors. As many as 38 investors participated in the anchor book, including prominent names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT and Steinberg India. Mutual funds such as ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, UTI Mutual Fund, Mirae Asset, Whiteoak Capital, LGT Select Funds, Tata Mutual Fund, Franklin India, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Bandhan Financial Services, Quant Mutual Fund, and Axis Growth Avenues AIF 1 also received shares in the anchor portion.
The company will use the net fresh issue proceeds worth ₹640 crore to meet its future capital requirements for lending and the balance for general corporate purposes.
India Shelter Finance Corporation is a retail-focused affordable housing finance company primarily serving the self-employed in low and middle-income groups, especially first-time home loan takers in Tier-II and Tier-III cities.
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