India Shelter Finance raises ₹360 crore from anchor investors ahead of IPO

India Shelter Finance Corporation on December 12 raised more than 360 crore from anchor investors, just a day ahead of the commencement of the public issue. According to an exchange filing, around 38 investors participated in the anchor book, including ICICI Prudential, Goldman Sachs, Massachusetts Institute of Technology and many more.

The company has finalised the allocation of 7,302,229 equity shares to anchor investors at the allocation price of 493 per share.

Nippon Life India, Kotak Mahindra Trustee, Axis Mutual Fund, UTI Mutual Fund, Mirae Asset, Whiteoak Capital, LGT Select Funds, Tata Mutual Fund, Franklin India, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Bandhan Financial Services, Quant Mutual Fund, and Axis Growth Avenues AIF 1 were among other companies which also invested in the company via anchor book.

“Out of the total allocation of 7,302,229 Equity Shares to the Anchor Investors, 4,169,370 Equity Shares (i.e. 57.10% of the total allocation to Anchor Investors) were allocated to 14 domestic mutual funds through a total of 25 schemes,” the company further said in its exchange filing.

The affordable housing finance company, backed by WestBridge Capital and Nexus Venture Partners, aims to raise 1,200 crore through its upcoming initial public offering (IPO). The price range for the offering is set at 469-493 per share.

The IPO consists of a fresh issue of shares valued at 800 crore by the company and an offer-for-sale (OFS) of 400 crore worth of shares by existing shareholders.

The selling shareholders in the OFS include Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund), Nexus Ventures III, Catalyst Trusteeship (as trustee of MICP Trust), Madison India Opportunities IV, and MIO Starrock.

The net proceeds from the fresh issue will primarily be allocated to meet future capital requirements for lending, amounting to 640 crore, with the remaining funds earmarked for general corporate purposes.

The Gurugram-based company draws comparisons with Aptus Value Housing Finance India, Aavas Financiers, and Home Finance Company India.

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Published: 12 Dec 2023, 10:26 PM IST

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