India Shelter Finance Corporation provides affordable housing loans to retail customers in Tier II and Tier III cities. The company changed its name from “Satyaprakash Housing Finance India Limited” to the current name after receiving a certificate to act as a housing finance institution without accepting public deposits from the National Housing Bank (NHB). The business has a broad distribution network, a scalable IT infrastructure, and a retail-focused approach to affordable home financing. Its Assets Under Management (AUM) grew at a 2-year CAGR of 40.8% during 2021-2023.
The company targets self-employed clients, emphasising first-time house loan applicants in India's Tier II and Tier III cities who fall into the low and middle-income brackets. This strategy helps the business in achieving relatively high yields on advances. For FY 2023, the yield to advances stood at 14.9%, the second highest in India for such a period.
With 183 well-established branches spread over 15 states, the organisation is well-represented in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat. The company operates in the retail credit market, which is likely to witness a CAGR of 13-15% during 2023-2025. The sector would primarily be supported by an increase in private consumption with a steady rise in GDP growth, a shift in consumers' attitude towards debt, and the trend of urbanisation, etc.
India Shelter Finance Corporation IPO Details
India Shelter Finance Corporation Limited IPO Date
India Shelter Finance Corporation Limited’s IPO will open on December 13, 2023, and close on December 15, 2023. The IPO will be listed on the NSE and BSE on December 20, 2023.
India Shelter Finance Corporation Limited IPO Price Band
India Shelter Finance Corporation Limited is an Offer for Sale and fresh IPO, aggregating up to ₹12,000 million. The price band is not yet announced.
India Shelter Finance Corporation Limited IPO Lot Size
India Shelter Finance Corporation Limited’s IPO lot size is not yet announced.
India Shelter Finance Corporation Limited IPO Objectives
The objectives of India Shelter Finance Corporation Limited IPO are listed below:
- To meet future capital requirements towards onward lending.
- For general corporate purposes.
Peer Details
As per DRHP, there are three listed peers whose business portfolio is comparable to the company:
- Aptus Value Housing Finance India Limited
- Aavas Financiers Limited
- Home First Finance Company India Limited
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Contact Details of India Shelter Finance Corporation Limited
Registered office: 6th Floor, Plot No. 15 Sector 44, Institutional Area, Gurugram 122 002, Haryana, India
Phone: +91 124 413 1800
E-mail: compliance@indiashelter.in
India Shelter Finance Corporation Ltd Company Financials
| Particulars | Year ending on March 31, 2023 ( ₹ Million ) | Year ending on March 31, 2022 ( ₹ Million ) |
|---|---|---|
| Total Income | 6,062.31 | 4,598.06 |
| Profit After Tax (PAT) | 1,553.42 | 1,284.47 |
| AUM | 43,594.31 | 30,732.93 |
| Disbursements | 19,643.77 | 12,952.61 |
| Average Yield on Loan – Principal Outstanding | 14.6% | 14.9% |
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Strengths
4The company holds the fastest-growing Assets Under Management among Housing Finance Companies in India, which is likely to be backed by rising urbanisation, growing disposable income, and favourable demographics.
The company has a significant presence in Tier II and Tier III cities, which helps the business run a vast and diverse physical distribution network. The organisation has adopted a strategy of penetrative expansion across India by focusing on serving low and middle-income people.
The company plans to grow and diversify its distribution network to achieve deeper penetration in key states and generate sustainable growth. This would be supported by the growth in existing markets along with the growing size and scale of the Indian housing industry through the expansion of branches.
The company is focused on diversifying its borrowing profile, optimising borrowing costs, and maintaining a positive Asset Liability Management (ALM) position.
Risks
4The company operates a highly capital-intensive business, which requires ample funds to run its operations smoothly. Any disruption in the sources of financing may harm its operational and financial performance.
The AUM of FY 2023 was mainly contributed by three states, which creates a significant dependence on the business. Any adverse developments in these states could have an adverse effect on its business.
The company is exposed to risks arising from default on loans repay loans as it primarily serves low and middle-income clients. This could affect the financial position of the business in a significant way.
The company’s operation could be impacted by the volatility in interest rates for both its lending and treasury operations. As a result, the net interest income would be impacted and affect its profitability.
