India Shelter Finance Corporation Limited

India Shelter Finance Corporation Limited - IPO DETAILS 

Company Overview 

Established in 1998, India Shelter Finance Corporation Limited, formerly known as Satyaprakash Housing Finance India Limited, specializes in housing finance. The company extends loans for various purposes such as house construction, extension, renovation, and the acquisition of new homes or plots. Additionally, it provides loans against property (LAP), with loan amounts ranging from Rs. 5 Lakhs to Rs. 50 Lakhs and a maximum tenure of 20 years.  

As of November 30, 2023, IndiaShelter has disbursed over Rs. 5500 Crores in loans, facilitating families in achieving homeownership or improving their residences. As of September 30, 2023, the company boasts a network of 203 branches spanning 15 states, including Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat. The number of branches has seen significant growth, increasing from 115 as of March 31, 2021, to 130 as of March 31, 2022, and reaching 203 as of September 30, 2023.  

India Shelter Finance Corporation Limited follows a Phygital model, combining a "foot on the street" approach to physical customer service through a network of over 1,500 customer advisors (as of September 30, 2023) with the digitalization of credit and banking processes. With an in-house team of over 300 collection officers as of March 31, 2023, the company prioritizes customer satisfaction and has introduced iServe, a dedicated customer service application addressing the queries and concerns of existing customers online promptly. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. To fulfill prospective capital needs for advancing loans. 

5. Addressing general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. Emerging as one of the rapidly expanding entities in terms of assets under management within the Housing Finance Companies sector in India, it excels in generating high yields and maintains a retail-focused portfolio with granularity. 

2. The company takes pride in its extensive and diverse Phygital Distribution Network, particularly robust in Tier II and Tier III cities. 

3. Operating with an in-house Origination Model, the company ensures operational efficiency and seamlessness across essential functions. 

4. Characterized by a technology and analytics-driven approach, the company has adopted a scalable operating model. 

Cons 

1. Failure to adhere to financial and other covenants in debt financing agreements poses a potential threat to the business. 

2. The heavy reliance on three specific states, which contribute to 63.4% of assets under management in FY 2023, exposes the company to risks, and any adverse changes in these states could have detrimental effects on the business. 

3. A decline in the credit quality of the loan book or inadequate monitoring measures may result in adverse impacts on both operations and financial conditions. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”