India Shelter Finance Corporation Limited IPO
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- Background and Growth:
- The company started in 1998 and underwent a name change in 2010.
- The individual promoter, Mr. Anil Mehta, acquired control in 2009.
- Between Financial Year 2021 and 2023, the company experienced a robust two-year Compound Annual Growth Rate (CAGR) of 40.8% in Assets Under Management (AUM).
- Business Focus and Target Market:
- The company targets the self-employed customer base.
- Focuses on first-time home loan takers in the low and middle-income group in Tier II and Tier III cities in India.
- Specializes in affordable housing loans with a ticket size lower than ₹2.5 million.
- Distribution Network:
- The company has an extensive distribution network with 203 branches as of September 30, 2023.
- Presence in 15 states, with a significant footprint in states like Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.
- Financial Performance:
- Achieved a yield to advances of 14.9% for the Financial Year 2023, the third-highest in India for the period.
- Maintains a low Gross Non-Performing Asset (GNPA) ratio, with 1.00% as of September 30, 2023.
- Technology Integration:
- Leverages technology and analytics across operations and the customer lifecycle.
- Paperless approach to customer acquisition and onboarding.
- Utilizes mobile solutions, including iSales and IndiaShelter iCredit applications.
- Customer service is enhanced through the IndiaShelter iServe application.
- In-House Operations and Risk Management:
- Adopts an end-to-end in-house approach for key lending operations, including customer acquisition, underwriting, collateral valuation, legal assessment, and collections.
- Maintains control over processes to ensure efficiency and reliability.
- Utilizes data-centric and iterative processes for creditworthiness assessment.
- Debt Financing and Credit Ratings:
- Historically meets debt financing requirements from diverse and long-term sources.
- Obtains long-term funding from a diversified lender base, including public and private sector banks.
- Holds a healthy credit rating of ICRA A+ (stable) from ICRA Limited and CARE A+ (Positive) from CARE Limited as of September 30, 2023.
Objects of the India Shelter Finance Corporation Limited IPO:
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
i. To meet future capital requirements towards onward lending, and
ii. General corporate purposes.
Total number of shares are issues: -
i. Fresh Issue is 16,227,181 shares,
ii. Offer for Sale is 8,113,590 shares.
India Shelter Finance Corporation Limited IPO Details:
| Open Date: | Dec 13 2023 |
| Close Date: | Dec 15 2023 |
| Total Shares: | 24,340,771 |
| Face Value: | ₹ 5 Per Equity Share |
| Issue Type: | Book Built Issue IPO |
| Issue Size: | 1,200 Cr. |
| Lot Size: | 30 Shares |
| Issue Price: | ₹ 469 - 493 Per Equity Share |
| Listing At: | NSE,BSE |
Promoters And Management:
Sudhin Bhagwandas Choksey is the Chairman and Non-Executive Nominee Director of the Company and has been nominated to the Board jointly by the Corporate Promoters, WestBridge Crossover Fund, LLC and Aravali Investment Holdings. He holds a bachelor’s degree in commerce from The Syndenham College of Commerce and Economics, University of Bombay, Mumbai, Maharashtra. He is also a member of the Institute of Chartered Accountants of India. He was previously associated with Gruh Finance Limited as the managing director and Bandhan Bank as executive director (designate). He has experience in the banking sector.
Rupinder Singh is the Managing Director and Chief Executive Officer of the Company. He holds a post graduate diploma in business management from FORE School of Management, New Delhi, Delhi. He was previously associated with Cholamandalam Investment and Finance Company Limited as senior vice-president and business head, HDFC Bank Limited as senior vice-president and GE Money Financial Services Limited (formerly, GE Countrywide Consumer Financial Services Limited) as regional sales manager. He has experience in the finance sector.
Anup Kumar Gupta is a Non-Executive Nominee Director of the Company, as a nominee of Nexus Ventures III, Ltd. and Nexus Opportunity Fund II, Ltd. He has been associated with the Company since July 21, 2012. He holds a degree in bachelor of technology (hons.) from the Indian Institute of Technology, Kharagpur, West Bengal and a post graduate diploma from the Indian Institute of Management-Calcutta. He was previously associated with WNS Global Services as chief operating officer for WNS Group and with Booz Allen & Hamilton as a consultant. He has experience in business management.
Financials of India Shelter Finance Corporation Limited IPO:
A. Balance Sheet
B. Profit & Loss Statement
C. Cash Flow Statement
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
| Equity Share Capital | 429.78 | 437.07 | 437.65 |
| Reserves | 8,943 | 10,324 | 11,968 |
| Borrowings | 14,091 | 18,834 | 28,123 |
| Trade Payables | 46 | 46 | 61 |
| Other Liabilities | 1,117 | 2,571 | 2,366 |
| Total Liabilities | 15,254 | 21,451 | 30,551 |
| Net Block | 140 | 166 | 238 |
| Other Assets | 257 | 145 | 181 |
| Total NC Assets | 397 | 311 | 420 |
| Cash & Bank | 4,137 | 3,303 | 5,073 |
| Other Assets | 20,093 | 28,598 | 37,463 |
| Face value | 5 | 5 | 5 |
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
| Sales | 3,167 | 4,480 | 5,845 |
| Raw Material Cost | 199 | 120 | 141 |
| Employee Cost | 620 | 1,013 | 1,346 |
| Other Expenses | 175 | 247 | 376 |
| Other Income | 61 | 118 | 217 |
| Depreciation | 51 | 65 | 82 |
| EBITDA | 2,234 | 3,218 | 4,200 |
| EBITDA Margin | 70.54% | 71.83% | 71.86% |
| Interest | 1,053 | 1,483 | 2,099 |
| Profit before tax | 1,130 | 1,669 | 2,020 |
| Tax | 256 | 385 | 466 |
| Net profit | 874 | 1,284 | 1,553 |
| NPM (%) | 27.07% | 27.94% | 25.62% |
| Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
| Cash From Operating Activity | |||
| Profit From Operation | 1,163 | 1,460 | 2,062 |
| Payable | 6 | -0.3 | 16 |
| Loans And Advances | -5,307 | -6,606 | -10,179 |
| Other WC Items | 144 | 468 | 81 |
| Working Capital Changes | -5,158 | -6,138 | -10,082 |
| Direct Taxes | -214 | -275 | -501 |
| Net Cash Inflow from Operating Activity | -4,209 | -4,953 | -8,522 |
| Cash from Investing Activity | |||
| Fixed assets purchased | -18 | -51 | -64 |
| Fixed assets sold | 0.1 | 2 | 3 |
| Investments purchased | -154 | -1,809 | 0 |
| Investment sold | 939 | 0 | 1,686 |
| Net cash inflow from investing activities | 766 | -1,858 | 1,625 |
| Cash from Financing Activity | |||
| Proceeds from shares | 2 | 52 | 14 |
| Redemption on debenture | 150 | 1650 | 0 |
| Proceeds from borrowings | 9784 | 11406 | 16386 |
| Repayment of borrowings | -2518 | -6646 | -7123 |
| Financial liabilities | -32 | -45 | -58 |
| Other financing items | -1786 | -500 | -150 |
| Net Cash Flow | 2158 | -893 | 2171 |
Comparison With Peers:
| Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
| India Shelter Finance Corporation Limited | 606 | 155 | 14.51 | 34.0 | 493 | 5,278 |
| Aptus Value Housing Finance India Limited | 1093 | 503 | 10.10 | 30.0 | 332 | 16,539 |
| Aavas Financiers Limited | 1,608 | 430 | 54.41 | 25.8 | 1,515 | 11,989 |
| Home First Finance Company India Limited | 791 | 228 | 25.94 | 33.8 | 1,019 | 9,006 |
Recommendation on India Shelter Finance Corporation Limited IPO:
To be updated shortly
Lead Manager of India Shelter Finance Corporation Limited IPO:
Registrar of India Shelter Finance Corporation Limited IPO:
Company Address:
India Shelter Finance Corporation Limited
6 th Floor, Plot No. 15 Sector 44,
Institutional Area,
Gurugram - 122 002
Phone: +91 124 413 1800
Email: compliance@indiashelter.in
Website: https://www.indiashelter.in/
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