November 17, 2023

India Shelter Finance set to launch IPO in December; looks to raise ₹1,800Cr

Fortune India
As per DRHP filed with the SEBI, India Shelter Finance is eyeing to raise around ₹1,800 crore through the IPO route, which would be a mixture of fresh equities and an offer for sale (OFS) by existing shareholders.
In an interaction with Fortune India, Rupinder Singh said that the company targets first-time home loan borrowers in Tier 2 and Tier 3 cities. “From the beginning, the focus was to take care of self-employed people instead of the salaried population in the low and middle-income segments with an aim to promote financial inclusion.”
In line with its financial inclusion vision, the company aims to empower women by ensuring that a majority of its loans have women as the first applicants, he says. “The company seeks to help address problems arising from patriarchy in Indian society and inculcate a feeling of security and independence in women.”
As of March 31, 2023, 97.5% of India Shelter's loans had one or more borrowers as women. Out of this, more than 50% of women own properties in their name or joint parties.
The upcoming public issue of India Shelter Finance comprises a fresh issue of equity shares worth ₹1,000 crore and OFS of up to ₹800 crore by existing shareholders. Under OFS, Catalyst Trusteeship Ltd, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III Ltd, and Nexus Opportunity Fund II Ltd will offload their stake in the housing finance company.
The firm's promoters - WestBridge Crossover Fund and Aravali Investments Holdings – hold shareholdings of 24% and 31.4%, respectively, while founder Anil Mehta owns a 1.7% stake in the company. Among others, Nexus Ventures III, Nexus Opportunity Fund II, Madison India Opportunities IV, MIO Starrock, and Catalyst Trusteeship also own stakes in the company.
India Shelter Finance Corporation, which provides home loans and loans against property to customers in the low and middle-income segments, intends to use the capital raised from the issue of fresh equities to meet future capital requirements towards onward lending. A part of the fund will be also used to meet general corporate purposes.