India Shelter Finance IPO


India Shelter Finance IPO

India Shelter Finance Corporation Limited    INR 14,070/– 30 shares

India Shelter Finance IPO Details

13 Dec ’23 INR 14,07030 INR 469 – 493

15 Dec ‘23

Issue Size IPO Doc

Subscription Status As on 14 Dec ’23, 5:00 PM

Qualified Institutional Buyers                                              0.84x
Non-Institutional Investor                                                                      7.33x
Retail Individual Investor                                                    5.05x
Employees    0.00x
Total   4.34x

About India Shelter Finance

Being a retail-focused company, India Shelter Finance emphasizes providing cost-effective housing loans.

The target of the company happens to be those people who are self-employed, especially first-time applicants of home loans in low-income and middle-income groups in Indian Tier II and Tier III cities.

The strategy of India Shelter Finance involves leveraging analytics and technology throughout the life cycle of the customers.

India Shelter Finance sticks to an end-to-end in-house technique intended for key lending operations that include underwriting, client acquisition, legal assessment, collateral valuation, and collections.

This technique makes sure that there is direct control over reducing turnaround times, processes, enhancing the retention of customers, and mitigating the threat of fraudulent pursuits.

Parent Organisation  Founded Managing Director

India Shelter Finance 1998 Mr. Rupinder Singh

Corporation Limited  

Strengths and Risks

+ The primary focus of India Shelter Finance is on providing finance to the self-construction and purchase of residential properties for first-time takers of home loans. As of 30th September 2023, as many as 70.7% of their clients fall into this section.

+ India Shelter Finance succeeded in attaining a 40.8% AUM growth from2021 to 2023.

+ The AUM (asset under management) composition of the business showcases a strategic balance with loans against property demonstrating 42.4% and home loans accounting for as much as 57.6%.

+ The loan-to-value ratios of India Shelter Finance stand at 45.3% for loans against property as of 30th September 2023 and 55.1% for home loans.

+ India Shelter Finance is known to maintain a customer-centric approach while serving the low-income and middle-income people, both self-employed and salaried. As of 30th September 2023, the majority of their customers are able to earn up to ₹50,000. A significant part of the loan portfolio of these individuals consists of loans where the principal amount is less than ₹2.5 million.

+ The company has reduced GNPA (gross non-performing assets) to 1.13% as of 31st March 2023.

+ Having a physical distribution network covering 203 branches across as many as 15 states, this business positions itself in areas of substantial growth for cost-effective housing finance. The presence of the company is in states covering as much as 94% of the reasonably priced housing finance market.

The ability of India Shelter Finance to recover outstanding or collateral amounts from defaulted loans on time, or not at all, might affect its fiscal condition, business, as well as operational outcomes adversely.

The majority of the assets under management of the company, precisely 62.7% and 63.4% respectively, had their origin from 3 states for the 6 months ending 30thSeptember 2023. The fiscal condition, business, as well as operational expenses of the company might be harmed by any negative developments in all these states.

Experiencing negative cash flows historically, India Shelter Finance might go on facing these types of situations in the forthcoming days.

Regular inspections done by the Reserve Bank of India and the National Housing Bank happens to be part of the regulatory landscape of the business. In case the company fails to comply with inspection observations, it can result in fines and penalties, which can impact the business, reputation, cash flows, and operational outcomes of the business.

WestBridge Crossover Fund, LLC, a corporate promoter, has made investments in Aptus Value Housing Finance Limited, which happens to be a business in an identical line of business in the name of India Shelter Finance.

Historically encountering negative cash flows, Indian Shelter Finance might go on facing these types of situations in the upcoming days.

While maintaining a CRAR (Capital to Risk-Weighted assets Ratio) surpassing RBI specifications, maintaining this level might restrict the ability of the company to deploy capital for the purpose of portfolio expansion, profit-generating opportunities, or strategic investments.

Emphasizing first-time home loan acceptors in Tier II and Tier III cities of India, the business acknowledges a possible higher threat of non-payment or default among these types of clients. 70.7% of the customers of the company fall into this section as of 30th September 2023.

India Shelter Finance is facing threats from customer decisions when it comes to transferring loan balances to other institutions, or experiencing challenges to refinance current housing loans from other establishments to the company.

Potential risks are posed by legal as well as other proceedings that involve the company as well as its directors, and any unfavorable results might affect its fiscal condition, business, and operational expenses in an adverse way.

The operational outcomes, fiscal conditions, as well as cash flows of the company might be adversely affected by any unprovided commitments and contingent liabilities in fiscal statements in case they materialize.

Financials

India Shelter Finance IPO

India Shelter Finance IPO

India Shelter Finance IPO

Application details

Apply asPrice band               Apply upto
Regular         ₹ INR 469 – 493            ₹ 2 Lakh
High Net worth individuals INR 469 – 493      ₹ 2 – 5 Lakh

For India Shelter Finance IPO, eligible investors may apply as Regular.


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