Shares of India Shelter Finance will be listed at the exchanges today. The company fixed the IPO price as ₹493, at the upper end of the price band ₹469-493. ISFCL IPO was subscribed 36.71 times.
The IPO of India Shelter Finance, which came out at a price band of ₹469-493, received bids for 66.75 crore shares as against an offer of 1.79 crore shares.
While retail investors portion was subscribed 9.95 times, quota reserved for non-institutional investors received bids for 28.51 times and that of qualified institutional buyers 89.70 times. The offer consisted of a fresh issue of 1.62 crore shares worth ₹800 crore and an OFS of 81.13 lakh shares worth ₹400 crore.
To gain 32% at listing: GMP suggests
For ISFCL, a major player in affordable housing segment, the grey market premium is currently suggesting a listing at ₹653, a gain of around 32 per cent over issue price of ₹493, said Shivani Nyati of Head of Wealth, Swastika Investmart Ltd.
India Shelter boasts strong fundamentals built on years of experience in the affordable housing market. The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homesm, she said. Additionally, India Shelter has demonstrated consistent financial performance with a track record of revenue and profit growth, Shivani Nyati further said.
“Investors may consider booking profit on the listing; however, long-term investors may hold it by keeping a stop loss. A fresh buy will not be suggested,” she added.
As part of the IPO, the retail-focused affordable housing finance company raised ₹360 crore from anchor investors.
As many as 38 investors participated in the anchor book, including prominent names such as Goldman Sachs, Massachusetts Institute of Technology, NHIT and Steinberg India. Mutual funds such as ICICI Prudential Mutual Fund, Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, UTI Mutual Fund, Mirae Asset, Whiteoak Capital, LGT Select Funds, Tata Mutual Fund, Franklin India, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Bandhan Financial Services, Quant Mutual Fund, and Axis Growth Avenues AIF 1 were also received shares in the anchor portion.
The company will use the proceeds worth ₹640 crore to meet its future capital requirements for lending and the balance for general corporate purposes.