Westbridge, Nexus-backed India Shelter Finance files for Rs 1,800 crore IPO

India Shelter Finance Corporation, supported by WestBridge Crossover Fund and Nexus Ventures, has filed a draught red herring prospectus with the capital markets regulator Sebi in an effort to earn Rs 1,800 crore through an initial public offering.

Both the company and its investors (Catalyst Trusteeship, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III, and Nexus Opportunity Fund II) are offering new shares in the IPO, totaling Rs 1,000 crore.

The affordable housing organisation is headquartered in Gurugram, and it is promoted by WestBridge Crossover Fund LLC, which owns 24 percent, and Aravali Investment Holdings, which owns 31.4 percent.

The Nexus Opportunity Fund II, Catalyst Trusteeship, MIO Starrock, and Madison India Opportunities IV each hold 4.9% of the company's stock, while Nexus Ventures III Ltd owns 22%.

Prior to submitting the red herring prospectus with the RoC, the retail-focused housing financing company may seek a private placement of Rs 200 crore.

The money from the offer for sale will go to the selling shareholders, while the money from the new issuance will be used to meet the company's future capital needs for onward lending and other general corporate objectives.

With a compound annual growth rate (CAGR) of 40.8% in AUM between FY21 and FY23, India Shelter Finance is a nationwide institution with a particularly strong presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat. Its 183 branches can be found in 15 different countries.

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The housing financing company's profit for the fiscal year ending in March FY23 was Rs 155.3 crore, a 21.0% increase over the prior year. The company's operating income rose 30.5% to Rs 584.5 crore in the same time frame.

The issue's merchant bankers are ICICI Securities, Citigroup Global Markets India, Kotak Mahindra Capital Company, and Ambit.