India Shelter Finance Set For Mega IPO; Things To Know Before You Subscribe To The Issue

India Shelter Finance Corporation is gearing up for its Initial Public Offering (IPO), set to open for bidding on December 13 and conclude on December 15. With a book-built issue of Rs 1,200 crores, the IPO is a combination of a fresh issue of 1.62 crore shares amounting to Rs 800 crores and an offer for sale of 81 lakh shares totalling Rs 400 crores.

Investors can subscribe at a price band ranging from Rs 469 to Rs 493 per share, each with a face value of Rs 5. The minimum lot size for an application is set at 30 shares, requiring a minimum investment of Rs 14,790 for retail investors.

The floor price, at 93.80 times the face value of equity shares, contrasts with the cap price set at 98.60 times the face value. The price-to-earnings ratio, based on diluted earnings per share for fiscal 2023, is estimated at 26.85 times for the floor price and 28.22 times for the cap price. Interested participants can bid for a minimum of 30 equity shares, with subsequent increments in multiples of 30 equity shares.

The allocation details for anchor investors will be disclosed on December 12.

Key Details for Investors to Note:

IPO Schedule: The IPO will be open for subscription from December 13 to December 15.
Price Band: The price band is fixed at Rs 469 to Rs 493 per share with a face value of Rs 5.
Issue Size: A book-built issue of Rs 1,200 crores, with a fresh issue of 1.62 crore shares (Rs 800 crores) and an offer for sale of 81 lakh shares (Rs 400 crores).
Allotment Date: The IPO allotment is expected to be finalized on December 18, 2023.
Book Running Lead Managers: ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited are the book-running lead managers.
Registrar: Kfin Technologies Limited is the registrar for the issue.
Listing Date: The IPO is set to list on BSE and NSE with a tentative listing date of December 20, 2023.

Anil Mehta, WestBridge Crossover Fund, LLC, and Aravali Investment Holdings are the company's promoters. Not more than 50% of the net offer is reserved for QIB, at least 35% for retail investors, and a minimum of 15% for NII. The net proceeds from the IPO will be utilized to meet future capital requirements for onward lending and general corporate purposes.

As of December 11, the grey market premium for India Shelter Finance stands at an impressive +150, indicating that the shares are trading at a premium of Rs 150 in the grey market, as reported by investorgain.com.