India Shelter Finance IPO subscribed 36.6 times on Day 3; QIB, NII portions see huge demand

The initial public offering (IPO) of India Shelter Finance saw significant demand during the final day of bidding. The IPO, which opened for subscription on Wednesday (December 13), received a favourable response from retail and non-institutional investors, achieving full subscription on the first day.

The robust demand from the retail and non-institutional investor segments persisted during the second day of bidding. On the third day (December 15), the portion reserved for qualified institutional buyers (QIBs) garnered a substantial 38.6 times subscription, compared to a modest 0.84 times on the second day of the issue. 

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Moreover, the strong demand from the retail segment continued on the final day, with the subscription rate soaring to 9.79 times. Non-institutional investors also displayed significant interest in the offering, as the subscription in the segment reached 28.47 times.

Overall, the IPO received bids for 65,59,44,390 shares on the final day as against the 1,79,10,449 shares available for subscription, translating into a subscription rate of 36.62 times.

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Through the issue, the company aims to raise ₹800 crore via the issuance of fresh equity shares, whereas existing shareholders and promoters are divesting stake worth ₹400 crore. This results in a total IPO size of ₹1,200 crore.

The price band for the offer has been fixed at ₹469–493 per equity share, with a face 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 retail investors at 35%.

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

The company caters to the housing finance needs of customers, focusing primarily on self-employed individuals. Its target demographic includes first-time home loan applicants in the low and middle-income groups, with a geographical focus on Tier II and Tier III cities in India.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.