India Shelter Finance IPO: What GMP signals ahead of issue opening for subscription tomorrow

India Shelter Finance IPO: The 1,200 crore initial public offering (IPO) of housing finance firm India Shelter Finance is scheduled to open tomorrow, Wednesday, December 13, and close on Friday, December 15. The firm has decided a price band of 469-493 apiece for the IPO with a face value of 5. The minimum lot size for an application is 30 shares. The minimum amount of investment required by retail investors is 14,790.

India Shelter Finance Corporation Limited deals with housing finance. Lending for new home construction, remodeling, additions, and land acquisition is what the company offers. Additionally, loans against property (LAP) are provided by the company.

The floor price is 93.80 times the face value of the equity shares and the cap price is 98.60 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for fiscal 2023 at the floor price is 26.85 times and at the cap price is 28.22 times. Bids can be made for a minimum of 30 equity shares and in multiples of 30 equity shares thereafter.

Let’s check what India Shelter Finance IPO GMP today signals ahead of opening for subscription starts.

India Shelter Finance IPO GMP today

India Shelter Finance is trading at a premium is 150 in the grey market, down from a premium of 200 yesterday.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of India Shelter Finance share price was indicated at 643 apiece, which is at a 30.43 percent premium to the IPO price of 493.

Based on the last 5 sessions of grey market activities, today’s IPO GMP is trending upward and expects a strong listing. The lowest GMP is 0, while the highest GMP is 220.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

India Shelter Finance Corporation Ltd IPO details

The issue consists of a fresh issue of shares of up to 800 crore and an offer for sale (OFS) of equity shares with face value of 5 each by a promoter and others aggregating up to 400 crore.

The net proceeds from the issue will be used by the company for general corporate purposes and to fund the following initiatives in order to meet future capital requirements for further lending.

The book-running lead managers of the India Shelter Finance IPO are ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited. The registrar of the offering is Kfin Technologies Limited.

India Shelter Finance IPO has reserved not more than 50 percent of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 percent for Non-Institutional Investors (NII), and not less than 35 percent of the offer is reserved for Retail Investors.

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Published: 12 Dec 2023, 09:50 AM IST

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