WestBridge-backed IndiaShelter Home Loans aims to launch IPO by December. Here are the key things to know

Gurugram-based IndiaShelter Home Loans is aiming to hit the capital markets by December to raise up to Rs 1,800 crore through an initial public offering (IPO). According to Rupinder Singh, Managing Director and CEO of IndiaShelter Home Loans, the book-running lead managers (BRLM) are in discussion with investors to discover the price band.

According to the draft red herring prospectus (DRHP), WestBridge Crossover Fund and Aravali Investments Holdings are the major promoters of the company. The former owns a 24 per cent stake in the company and the latter holds 31.4 per cent. Promoter Anil Mehta, who founded the company in 2010, holds a 1.7 per cent stake in IndiaShelter Home Loans.

On the other hand, Nexus Ventures III, Nexus Opportunity Fund II, Madison India Opportunities IV, MIO Starrock and Catalyst Trusteeship are among the selling shareholders, according to DRHP.

Singh told Business Today that the firm is looking to raise up to Rs 1,800 crore through the IPO. The offer for sale will be up to Rs 800 crore, and the rest of the amount will go into the company. We have plans to go further into the market. At present, we have a presence in 15 states through 183 branches in Rajasthan, Madhya Pradesh and Maharashtra, among others. Post-Covid portfolio tested very well. A lot of demand has been generated. We are looking for a growth run and the IPO will help us to infuse around Rs 1,000 crore in the company post-IPO. The company is aiming to launch the IPO by December.”

“Corporate governance, risk management, technology and customer satisfaction are our four major pillars,” Singh said adding the company had a return on equity of 13.4 per cent as of March 31, 2023.

The HFC, which mostly focuses on the self-employed, has gross non-performing assets (GNPA) of 1.1 per cent and NNPA of 0.8 per cent with collections efficiency of 99.4 per cent at present. The company sells two products namely home loans and loans against property. “All home loan products have fixed rates of interest. Our current cost of funds is 9 per cent and rate of interest is 11-11.50 per cent,” Singh said.

The company reported a profit after tax (PAT) of Rs 155.34 crore in FY23, up 20.93 per cent against Rs 128.45 crore reported in FY22. The figure stood at Rs 87.39 crore in FY21. On the other hand, the total income of the company stood at Rs 606.23 crore in FY23 against Rs 459.06 crore in FY22. Shares of the company are proposed to be listed on the BSE and NSE.

“IndiaShelter Home Loans also focused on empowering women and recognising their role as the driving force behind a household. As of March 31, 2023, 97.5 per cent of loans had one or more borrowers as women,” Singh said.

ICICI Securities, Citigroup Global Markets Company, Kotak Mahindra Capital and Ambit Private Ltd are the book-running lead managers to the issue. On the other hand, KFin Technologies is the registrar to the offer.

WestBridge also held a 34.44 per cent stake in Aptus Value Housing Finance India as of September 30, 2023.

 

 

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