India Shelter Finance Shares End At 10.24% Premium Over IPO Price

Shares of India Shelter Finance Ltd. listed at Rs 620 apiece on the NSE on Wednesday, a premium of 25.76% over their IPO price of Rs 493 apiece.

On the BSE, the stock debuted at Rs 612.70, a 24.28% premium.

The shares ended at a premium of 10.24% over the IPO price, though it declined 11.29% from its listing price to end at Rs 543.50 apiece on the BSE.

The IPO was subscribed to 36.71 times on its final day, led by institutional investors (89.70 times). Non-institutional investors subscribed 28.51 times and retail investors subscribed 9.95 times.

India Shelter Finance raised Rs 360 crore from anchor investors, ahead of its initial public offering on Dec. 13. The company allotted 73.02 lakh shares at Rs 493 apiece to 38 anchor investors.

It included Nippon Life India Asset Management Ltd., Motilal Oswal Financial Services Ltd., Edelweiss Trusteeship Co., SBI Life Insurance Co., and Max Life Insurance Co., among others.

Nippon Life India secured 3.6% of the allocation, while Kotak Banking and Financial Service Fund and Kotak Multi Asset Allocation Fund each netted 2.8%.

"The company has one of the fastest growing AUM among housing finance companies in India, high yields and granular, retail-focused portfolio...We believe that (the) issue is fairly priced and recommend 'subscribe–long term' rating to the IPO," a note from Anand Rathi said.

"Book value per share represents a discount compared to its peer group’s average P/BV of 4.2 times. However, even with this apparent discount, ISFCL's financial ratios do not appear as impressive as those of its competitors," said Choice Broking in a note.