India Shelter IPO: GMP rises on strong subscription status. Should you apply as issue ends today

India Shelter IPO: The initial public offering (IPO) of India Shelter Finance Corporation Limited Ltd opened for subscribers on 13th December 2023 and it will remain open till 15th December 2023. So, bidding for India Shelter IPO ends today. Hence, primary market investors have just one day in hand to apply for this IPO. As per the India Shelter IPO subscription status, the public issue worth 1,200 crore has received strong response from investors in first two days of subscription. 

The financial company has fixed India Shelter IPO price at 469 to 493 per equity share. Meanwhile, shares of India Shelter Finance Corporation Limited are available at a premium of 173 in grey market today.

Also Read: DOMS IPO: GMP jumps on strong subscription status. Should you apply as bidding ends today?

According to stock market observers, India Shelter IPO grey market premium (GMP) today is 173, which is 21 higher from its GMP of 152 on Wednesday. This means, India Shelter IPO GMP has risen in last two days. Market observers said that bullish sentiments on Dalal Street and positive response by investors could be the possible reason for rise in India Shelter IPO grey market premium.

In first two days of subscription, the public issue has been subscribed near 4 times. The initial offer has been subscribed around 5 times in retail category whereas its NII portion has been subscribed 6.25 times. The QIB portion of the public issue has been subscribed around 0.65 times in first two days of bidding.

By 2:48 PM on day 3 of bidding, the public issue has been subscribed 22.47 times whereas its retail portion has been subscribed 8.97 times. The NII portion of the IPO has been filled 25.54 times while its QIB portion has been subscribed 44.02 times.

India Shelter IPO review

Giving ‘subscribe with caution’ tag to the IPO, Choice Broking said, “At the higher price band of Rs. 493, ISFCL’s issue is priced at a P/BV of 2.4x based on post-issue Adj. BVPS, representing a discount compared to its peer group’s average P/BV of 4.2x. However, even with this apparent discount, ISFCL’s financial ratios do not appear as impressive as those of its competitors. The company’s return ratios do not quite match the steady growth seen in both revenue and profit. Considering this, we suggest a “Subscribe with Caution” rating for the issue.”

Geojit Securities has also given ‘subscribe’ tag to the public issue citing, “India Shelter Finance Corporation Ltd (ISFCL) is a retail focused affordable housing finance company with an extensive distribution network comprising 203 branches as of September 30, 2023 and a scalable technology infrastructure across our business operations and throughout the loan life cycle. Between Financial Year 2021 and Financial Year 2023, they witnessed a two year CAGR growth of 40.8% in terms of assets under management (AUM)(Source: CRISIL Report). Their target segment is the self-employed customer with a focus on first time home loan takers in the low and middle income group in Tier II and Tier III cities in India. This helps in generating relatively high yields on advances.”

BP Equities, GEPL Capital, Hem Securities, IDBI Capital, Ventura Securities, SBI Securities, Sushil Finance have given ‘subscribe’ tag to the public issue while Swastika Investmart has given ‘may apply’ tag to the India Shelter IPO.

India Shelter IPO details

As T+3 listing has become mandatory from 1st December 2023, India Shelter IPO allotment date is most likely on 18th December 2023 whereas India Shelter IPO listing date is most likely on 20th December 2023.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Published: 15 Dec 2023, 10:07 AM IST

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