India Shelter Finance IPO Draws Investor Buzz, IPO Oversubscribed 4x

14 Dec 2023 , 07:27 PM

On the second day of bidding, December 14, the India Shelter Finance Corporation IPO garnered significant interest, reaching a subscription of 4.36 times, with investors acquiring 7.8 crore equity shares against the offering size of 1.79 crore equity shares. Click here to subscribe the IPO.

High net worth individuals (HNIs) and retail investors played a pivotal role in supporting the IPO, subscribing 7.35 times and 5.08 times their respective allocations. Qualified institutional buyers (QIBs) secured 84 percent of the reserved portion.

This Rs 1,200-crore public offering had attracted investor attention since day one, December 13, with a subscription rate of 1.48 times.

The price band for the offering, set to conclude on December 15, is fixed at Rs 469-493 per share.

The IPO comprises a combination of a fresh issue, amounting to Rs 800 crore worth of shares, and an offer-for-sale (OFS) of shares worth Rs 400 crore. Notable investors participating in the OFS include Catalyst Trusteeship Limited (as trustee of MICP Trust), Catalyst Trusteeship (as trustee of Madison India Opportunities Trust Fund), Madison India Opportunities IV, MIO Starrock, and Nexus Ventures III.

The Gurugram-based affordable housing finance company intends to utilize Rs 640 crore of net fresh issue proceeds primarily for future capital requirements, particularly for onward lending, while the remaining funds will be allocated for general corporate purposes.