India Shelter Finance Makes Solid Debut On BSE, NSE: Should Investors Book Gains After IPO?

India Shelter Finance Corporation made a solid debut on Wednesday by listing at a premium on stock exchanges. On BSE, the stock is listed at a 24.3% premium, while on NSE, the stock is registered at a 25.8% premium. It is currently trading higher from its IPO price. Expert has advised investors to hold India Shelter shares for medium-to-long-term.

India Shelter Listing BSE:

On BSE, the stock opened at Rs 612.70 apiece, higher by 24.27% from its IPO issue price of Rs 493. The stock rallied to touch new 52-week highs and lows of Rs 625.00 and Rs 551.00 respectively.

However, soon after, there were pullbacks in India Shelter shares. From its listing price, the stock is currently trading lower by 8.6% on BSE at Rs 560.05 apiece. But this will be an upside of 13.60% from its IPO issue price.

The company's market cap is at Rs 5,997.54 crore.

India Shelter is listed on 'B'' Group Securities on BSE.

India Shelter Listing NSE:

Here, the stock is listed at a 25.76% premium to Rs 620 apiece compared to its IPO price. The stock's 52-week high and low is Rs 630 apiece and Rs 551 apiece respectively.

At the time of writing, the stock traded lower by 9.90% to Rs 558.60 apiece from its listing price, but was up by 13.31% from its IPO price.

India Shelter Share Price Outlook:

Shreyansh Shah, Research Analyst, StoxBox said, as expected, ISFC had a decent listing on the bourses today, with a premium of around 25% to the issue price of Rs. 493 per share due to its healthy asset quality which led to a fall in its GNPA to 1.0% as of September 30, 2023, compared to 2.8% as of September 30, 2022.

He added, that the company has been able to maintain a consistently high yield of more than 14% on its portfolio, driven by its commitment to deliver strong financial performance in the last three financial years. Furthermore, the company plans to expand its branch staff, extend the branch network within existing geographical areas, and explore opportunities in adjacent markets for diversification.

Further, he said, "With credit growth in the housing segment expected to remain robust in the medium term and ISFC commanding premium yields, we advise investors who have received allotment to hold shares from a medium to long-term perspective and not get swayed away to book listing gains."

India Shelter Finance IPO Subscriptions:

India Shelter IPO entered the primary market for subscription on December 13 and closed on December 15. The company too planned to raise about Rs 1,200 crore via its public offer. The price band of the IPO was fixed at Rs 469 to Rs 493 per share. On the last day, the IPO subscribed 36.71 times. The portion for QIBs received robust demand with an oversubscription of 89.70 times, followed by non-institutional investors and retail investors whose portion subscribed by 28.51 times and 9.95 times respectively.

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.