India Shelter Finance Corporation Ltd. share price target

India Shelter, during its maiden Analyst Day, shared Vision 2030 – AUM of INR 300bn by FY30, implying a >25% CAGR with RoE of >17%. Superior execution of business strategies (~40% AUM CAGR and >50% PAT CAGR between FY20-24).

Steady traction in earnings for India Shelter continued in Q3FY25 with RoE further expanding 30bps QoQ to 15.1%. Robust AUM growth at 8% QoQ, steady spread at >6% and stable credit cost QoQ were primary drivers of Q3 earnings growth of 7% QoQ / 54% YoY.

India Shelter Finance Corporation Ltd was incorporated under the name “Satyaprakash Housing Finance India Limited” on October 26, 1988. Mr Anil Mehta acquired control in 2009 and the name changed to “ India Shelter Finance Corporation Ltd” It is a retail-focused affordable housing finance company with an extensive distribution network comprising of 203 branches spread across 15 states.

Issue Snapshot: Issue Open: December 13 December 15, 2023 Price Band: Rs. 469 493 *Issue Size: Rs 1200 cr (Fresh Issue of Rs 800 cr + Offer for sale of Rs 400 cr) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 5 Book value: Rs 152.70 (September 30, 2023) Bid size: - 30 equity shares and in multiples thereof 100% Book built Issue Capital Structure: Pre Issue Equity: Rs. 45.41 cr *Post issue Equity: Rs. 53.53 cr Listing: BSE & NSE Book Running Lead Managers: ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, Ambit Private Limited Sponsor Bank: HDFC Bank Ltd & Kotak Mahindra Bank Limited Registrar to issue: KFin Technologies Limited Shareholding Pattern Shareholding Pattern Pre issue % Post issue % Promoter and Promoter Group 56.93 48.30 Public & Employees 43.07 51.70 Total 100.0 100.0 *=assuming issue subscribed at higher band Source for this Note: RHP IPO Note - India Shelter Finance Corporation Limited