Westbridge and Nexus-backed India Shelter Finance seeks 2,000 crore IPO; selects three I-bankers

The company has offices in over 180 offices in 15 states of India and offers affordable housing and small real estate loans

Gurugram-based affordable housing company India Shelter Finance, backed by major investors Westbridge Capital and Nexus Venture Partners, is preparing to launch an initial public offering (IPO) to raise around Rs 2,000 crore, several knowledgeable industry sources told Moneycontrol .

“India Shelter Finance has retained ICICI Securities, Kotak Mahindra Capital and Citi as investment banks for its proposed IPO,” said one of the people above.

A second person told Moneycontrol that the company has done well in the affordable housing segment and is doing a good job in terms of asset quality.

“Your Gross NPA and Net NPA scores are healthy. As competition in this segment intensifies, they are looking for growth capital,” this person added.

The IPO will largely consist of one main component, with some OFS (Offer for Sale) stake to help investors exit, a third person told Moneycontrol, adding that India Shelter Finance will improve its access to capital and its wanted to reduce financing costs.

All three of the above spoke to Moneycontrol on condition of anonymity.

Moneycontrol has sent out reminders and is awaiting an email response from India Shelter Finance and Kotak Mahindra Capital. Upon request, ICICI Securities and Citi declined to comment.

A CLOSER LOOK AT INDIA SHELTER FINANCE

India Shelter Finance has offices in more than 180 branches in 15 states of India and offers affordable housing and small real estate loans. The company has been in existence for 13 years and mainly looks after the self-employed with informal proof of income.

According to its website, its product offering includes financing for new home purchases, home extensions and renovations, reclaimed home loans, and real estate loans. The company has helped over 60,000 families by disbursing over Rs.4,000 billion in loans.

India Shelter Finance Corporation Ltd (ISFC) is the new name of the former Satyaprakash Housing Finance India Limited (SHFIL) which received the Certificate of Registration from the National Housing Bank on 26 October 1998. The company was acquired by a group of professionals with experience in various companies and relaunched on March 12, 2010, the website adds.