India Shelter Finance files for ₹1,800 crore IPO paper with Sebi

Affordable housing finance company India Shelter Finance, which is backed by Westbridge Capital and Nexus Venture Partners, has filed preliminary papers with the capital markets regulator Sebi to raise ₹1,800 crore through an initial public offering (IPO).

The IPO comprises a fresh issuance of equity shares worth ₹1,000 crore by the company, and an offer for sale of ₹800 crore by investors Catalyst Trusteeship, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III, and Nexus Opportunity Fund II, the draft red herring prospectus (DRHP) filed on Friday, read.

The top 10 shareholders of the company as on September 30, 2021 lists WestBridge Crossover Fund, holds 24.89%, Aravali Investment Holdings holds 24.28%, and Nexus Ventures III. Ltd holds 22.84% in the Gurugram based affordable housing finance company.

Among other investors include Nexus Opportunity Fund II Ltd holds 6.67%, Milestone Trusteeship Private Limited 5.46%, Sequoia Capital India Growth Investments I 4.98%, Sequoia Capital India Investments III 3.32%, Starrock 3.12%, Anil Mehta 2.51%, and Madison India Opportunities IV 1.45% equities. 

The fresh proceeds will be mainly used to meet future capital requirements towards onward lending and for general corporate purposes, while the offer for sale money will go to selling shareholders.

The company has appointed ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, and Ambit as the book-running lead managers to manage the IPO.

India Shelter Finance's target segment is self-employed customers with a focus on first-time home loan takers in the low and middle-income groups in Tier II and Tier III cities in the country.