India Shelter Finance IPO on Day 02: Issue subscribed to 4.36 times; NII portion booked 7.36 times
The initial public offering (IPO) of India Shelter Finance continued to attract decent interest from investors on its second day of bidding. The IPO, which opened for subscription on Wednesday (December 13), was fully subscribed on the first day, with strong participation from both retail and non-institutional investors.
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.
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On the second day (December 14), the robust demand from the retail segment continued, with the subscription rate reaching 5.08 times. The non-institutional investors (NIIs) also showed strong interest, as the subscription in the segment reached 7.35 times. However, qualified institutional buyers (QIB) portion saw a less enthusiastic response, with the subscription rate reaching 0.84 times, according to the data from BSE.
Overall, the IPO received bids for 7,80,12,780 shares on Day 02, as against the 1,79,10,449 shares available for subscription, resulting in a subscription rate of 4.36 times.
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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%.
Retail investors have the opportunity to submit bids for up to 13 lots, with each lot containing 30 shares. At the upper end of the IPO price band, at ₹493, retail investors are required to make a minimum investment of ₹14,790 per lot.
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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.
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Published: 14 Dec 2023, 06:55 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.