India Shelter Finance to make debut on Wednesday. Here's what GMP indicates
Considering the upper price band of Rs 493, the stock is likely to debut at a premium of 32%.
However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.
At the upper price band, the company is valued at P/BV of 2.4X with a market cap of Rs 5,278 crore post the issue.
India Shelter Finance boasts strong fundamentals built on years of experience in the affordable housing market. The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homes.
«The company has demonstrated consistent financial performance with a track record of revenue and profit growth.
Investors may consider booking profit on the listing. However, long-term investors may hold it by keeping a stop loss.
A fresh buy will not be suggested,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
The company is a retail-focused affordable housing finance company with an extensive distribution network and a scalable technology infrastructure. Between FY21 and FY23, it witnessed a two-year CAGR growth of 40.8% in terms of assets under management (AUM).
The company offers home loans up to Rs 50 lakh to urban households for construction, extension, renovation and purchase of new homes.
It has one of the fastest growing AUM among housing finance companies in India, high yields and a granular, retail-focused portfolio.
India Shelter Finance has recorded 32% year-on-year growth in its total income at Rs 606 crore for the financial year ended March 2023. Profit for the same period rose 21% to Rs 155 crore.
ICICI Securities, Citigroup Global Markets, Kotak Mahindra
