GURUGRAM - India Shelter Finance Corporation (ISFC), a Gurugram-based company specializing in home loans for urban households, is poised to launch its Initial Public Offering (IPO) with the subscription window scheduled to open from December 13-15. The firm aims to raise Rs 1200 crore, focusing on providing home loans up to Rs 50 lakhs through a broad distribution network across Tier II and Tier III cities.
ISFC has seen significant growth in its assets under management (AUM), which climbed by a compound annual growth rate (CAGR) of 40.8% from FY21 to FY23. This expansion has been supported by the company's robust technology infrastructure that caters primarily to first-time home loan takers. The company’s financial performance reflects this growth trajectory, with a notable surge in income to Rs 606 crore, marking a 32% increase year-over-year (YoY). Profits followed suit, rising by 21% YoY to Rs 155 crore as of March 2023.
The upcoming IPO consists of fresh equity and an offer for sale (OFS) issue, with the price band yet to be announced. The offer is structured to allocate 50% to institutional buyers, 35% to retail investors, and the remaining 15% to non-institutional investors. The net proceeds from the fresh equity are earmarked for addressing future capital requirements and other corporate purposes.
ISFC's journey began with its original registration in 1998 and underwent a significant milestone in 2010 when it received a new certificate after being acquired by professionals. Since then, the company has established itself as a key player in the housing finance sector, especially among urban households looking for affordable home loan options.
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