India Shelter Finance IPO Gears Up for Opening, Grey Market Premium Signals Positive Momentum

India Shelter Finance Corporation Ltd is set to launch its IPO on Wednesday, December 13, with the closing date on Friday, December 15. Allocation details for anchor investors will be disclosed on Tuesday, December 12. The price band for India Shelter IPO is fixed at ₹469 to ₹493 per equity share with a face value of ₹5.

The floor price is set at 93.80 times the face value, while the cap price is 98.60 times the face value. The price to earnings ratio based on diluted EPS for fiscal 2023 ranges from 26.85 times at the floor price to 28.22 times at the cap price. Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter.

India Shelter Finance Corporation Limited specializes in housing finance, offering loans for new home construction, remodelling, additions, and land acquisition. The company also provides loans against property (LAP).

The Grey Market Premium (GMP) for India Shelter Finance IPO today stands at +190, indicating a premium of ₹190 in the grey market, as reported by investorgain.com. With this premium and considering the upper end of the price band, the estimated listing price is projected to be ₹683 per share, reflecting a 38.54% increase over the IPO price.

Based on the recent trends in the grey market over the last five sessions, the IPO GMP is on an upward trajectory, suggesting expectations for a robust listing. The range of GMP varies from ₹0 to ₹220, according to investorgain.com.

The ‘Grey Market Premium’ serves as an indicator of investors’ willingness to pay a price higher than the issue price.

India Shelter Finance IPO comprises a fresh issue of shares up to ₹800 crore and an offer for sale (OFS) of equity shares with a face value of ₹5 each, aggregating up to ₹400 crore. The net proceeds will be utilized for general corporate purposes and funding initiatives to meet future capital requirements for further lending.

The book running lead managers for the IPO are ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited, and Ambit Private Limited. Kfin Technologies Limited is the registrar for the offering.

The IPO reservation includes not more than 50% for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors.”