India Shelter Finance Corporation Ltd. share price target

India Shelter reported >17% RoE in Q1FY26, sustaining eight straight quarters of steady performance; RoA climbed from 5.5% to 6% despite leverage (asset/equity) worsening from 2.6x to 2.9x in Q1FY26.

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.

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