India Shelter Finance IPO on Day 02: Issue subscribed 4.36 times; NII share booked 7.36 times

The initial public offering (IPO) of India Shelter Finance continued to attract strong interest from investors on the second day of bidding. The IPO, which opened for subscription on Wednesday (December 13), was fully subscribed on the first day, with strong participation from both retail and non-institutional investors.

The company wants to make money with the issue ₹800 crore by issuing new shares while existing shareholders and promoters divest equity value ₹400 crore. This results in a total IPO size of ₹1,200 crore.

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On the second day (December 14), strong demand from the retail segment continued with the subscription rate reaching 5.08x. Non-institutional investors (NIIs) also showed great interest as the subscription rate in this segment reached 7.35 times. However, the qualified institutional buyer (QIB) portion saw a less enthusiastic response, with the subscription rate touching 0.84 times, according to BSE data.

Overall, the IPO received offers for 7,80,12,780 shares on Day 02 as against 1,79,10,449 shares available for subscription, resulting in a subscription ratio of 4.36.

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The price range for the offer has been set at ₹469-493 per share, with a par value of ₹05 each. The net offer is reserved for qualified institutional buyers at 50% of the total offer size, non-institutional investors at 15% and private investors at 35%.

Retail investors have the opportunity to bid for up to 13 lots, with each lot containing 30 shares. At the upper end of the IPO price range, at ₹493, private investors must make a minimum investment of ₹14,790 per lot.

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India Shelter Finance Corporation, a housing finance company regulated by the National Housing Bank (“NHB”), specializes in providing loans and advances for housing construction activities.

The company takes care of the real estate financing needs of its customers, focusing primarily on the self-employed. Its target audience includes first-time home loan applicants in low and middle income groups, with a geographical focus on Tier II and Tier III cities in India.

Disclaimer: We recommend that investors consult certified experts before making any investment decision.

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