Is the India Shelter Finance IPO Worth Considering for Investors?

-

Is the India Shelter Finance IPO Worth Considering for Investors?

India Shelter Finance Corporation's three-day initial public offering (IPO) kicked off on Wednesday and will remain open for subscription until December 15.

The Rs 1,200 crore IPO consists of a new share issue, totaling up to Rs 800 crore, and an offer for sale (OFS) of equity shares with a face value of Rs 5 each. The OFS includes shares from promoters and other stakeholders, with an aggregate value of up to Rs 400 crore. India Shelter Finance has set a price range of Rs 469-493 per share for the IPO. Retail investors need to apply for a minimum lot size of 30 shares, requiring a minimum investment of Rs 14,790.




The IPO has earmarked up to 50% of shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and at least 35% for retail investors. Specializing in housing finance, India Shelter Finance offers loans for various purposes, including new home construction, remodeling, additions, land acquisition, and loans against property (LAP).

As for whether investors should subscribe to the IPO, analysts have expressed positive sentiments, citing the company's financial performance, technology-driven operations, and a scalable business model for future growth prospects.

Anand Rathi Securities sees India Shelter Finance as one of the fastest-growing housing finance companies, with a granular retail-focused portfolio, and suggests a subscribe-long term rating.

SBI Securities emphasizes the company's analytical-driven and scalable business model, recommending it as a medium to long-term play with promise in the affordable housing sector.

Swastika Investmart highlights the technology-driven company for its stable financial performance, attractive valuation, and long-term growth potential, suggesting a 'Subscribe' rating.

However, Choice Broking issues a "subscribe with caution" rating, noting favorable valuation but expressing reservations about financial ratios that "do not appear as impressive as those of its competitors."

In the financial year ending March 2023, India Shelter Finance reported a 32% YoY growth in total income at Rs 606 crore, with profits rising 21% to Rs 155 crore.

India Shelter Finance IPO
IPO subscription details
Housing finance company
India Shelter Finance valuation
Affordable housing sector growth
Technology-driven financial services
Anand Rathi Securities analysis
SBI Securities recommendation
Swastika Investmart rating
Choice Broking caution on IPO
Financial performance FY2023
Scalable business model
Residential construction loans
Land acquisition finance
Loans against property (LAP)
Retail-focused portfolio
Subscribe-long term rating
Granular retail loans
Technology-driven operations
Future growth prospects IPO







Comments

Post a Comment

Best Blogs

IB Interview Questions: M&A : Level 1 M&A Questions

-
Image
1. Why do companies merge? While are many reasons that companies merge the underlying driver of most M&A deals to expedite growth and/or generate cost savings to create value for the owners of the business. When people say that M&A is an ‘art’ and a ‘science’, what does that mean? The science refers to the mechanical valuation methods (Comps, DCF, etc.), but the art is in making a judgment call on valuation based on the outputs of the various valuation methodologies. 2. Who can pay more when buying a company: a Financial buyer or Strategic buyer? Why? Strategic (i.e. corporate) buyers can typically pay more than Financial (i.e. Private Equity) buyers because strategic buyers typically have overlapping operations that can be removed post-merger to generate cost savings (i.e. Synergies). 3. When are sponsors and corporate buyers on equal footing? When a Financial buyer already owns a competing asset, they can generate synergies (which justifies a higher price) and thus are on mor...
Read more

Getting into Investment Banking: A Comprehensive Guide

-
Image
Introduction Breaking into investment banking (IB) is no small feat, whether you're pre-MBA or post-MBA, from a target or non-target school. While high GPAs and test scores are standard, they are often not enough to stand out. Here’s a strategic approach to help you embark on a successful investment banking career. 1. Network Extensively When your application lands at an investment bank, it’s usually reviewed by a small team of bankers responsible for recruiting from specific schools. Given the competitive nature of this field, networking is crucial. Why Networking Matters: Decision-making bankers are more likely to advocate for you if they know you. Especially vital for non-target school students. Engage with alumni and other connections at your target firms. How to Network: Start reaching out to analysts and associates a few months before core recruiting starts. Look for non-target alumni if you're from a non-target school; they often help each other out. Demonstrate Interest...
Read more