India Shelter Finance Corp IPO: Latest Subscription Status, GMP Signals; Should You Bet Or Not?

Affordable housing finance company, India Shelter Finance Corporation (ISFCL) witnessed healthy demand on the first day of its public offer on December 13, with IPO fully subscribing. The Rs 1,200 crore worth IPO is subscribed by 1.48x driven by huge bidding from retail and non-institutional investors. ISFCL shares are proposed to be listed on BSE and NSE.

India Shelter Finance Corporation IPO Latest Subscription:

On Day 1, India Shelter also received healthy demand as the IPO fully subscribed by 1.48 times. The company received bids of 2,65,05,630 equity shares against its offered size of 1,79,10,449 equity shares.

Except for institutional investors, reserved portions across other investor categories were fully subscribed. The retail individuals' portion subscribed by 1.89x, while the non-institutional investors' portion subscribed by 1.74 times. Meanwhile, the qualified institutional buyers (QIBs) subscribed 57% of their reserved portion.

The second day of bidding will commence at 10 am on Thursday.

India Shelter Finance Corporation IPO GMP Today:

As per Investor Grain website, India Shelter Finance Corporation IPO last GMP is ₹170, last updated Dec 14th 2023 06:03 AM. With a price band of 493.00, India Shelter Finance Corporation IPO's estimated listing price is ₹663 (cap price + today's GMP). The expected percentage gain/loss per share is 34.48%.

India Shelter Finance Corporation IPO Details:

India Shelter Finance launched its IPO on December 13. Subscription in this public offer will be allowed till December 15th.

The price band of the IPO is fixed at Rs 469 to Rs 493 per share. The bid lot size is 30 Equity Shares and in multiples thereof.

Companies like ICICI Securities, Citigroup Global Markets India and Kotak Mahindra Capital Company are acting as the book-running lead managers of the IPO. Meanwhile, KFin Technologies is the registrar of the IPO.

The proceeds from the fresh issue will be utilised for future capital requirements towards onward lending and general corporate purposes.

ISFCL is a retail-focused Affordable Housing Finance Company (HFC) specializing in Tier-2, Tier-3, and rural regions. Incorporated in 1998, the company provides loans for house construction, extension, renovation, and the purchase of new homes or plots.

Should You Subscribe to India Shelter Finance Corporation IPO?

In its IPO note, Geojit said, "At the upper price band of Rs.493, ISFCL is available at a P/B of 2.4x (FY24 annualized), which appears to be fairly priced as per industry peers' valuations. Considering the government's focus on housing, an increase in per capita income, ISFCL's consistent improvement in asset quality, and robust AUM growth with high yields, we assign a "Subscribe" rating for the issue on a short-term basis."

Further, Shivani Nyati, Head of Wealth, Swastika Investmart in an IPO note said, "India Shelter Finance Corporation is a growing affordable housing finance company with a retail-focused portfolio. It has an extensive and diversified distribution network and a strong risk management system. It is a technology-driven company with a scalable operating model. The financial performance of the company has also been stable."

However, Nyati also pointed out that there are some industry-specific risks as well, like high capital requirements, interest rate fluctuations, and the risk of nonpayment or default.

Lastly, on recommendation, she said, "The company's P/BV of 3.48x and P/E of 27.7x reflect a fair valuation that aligns with its growth prospects and risk profile. Consequently, based on its solid fundamentals, attractive valuation, and long-term growth potential, we recommend
Subscribe rafor the ISFC IPO."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.