India Shelter Finance IPO बुधवार को ओपन हो चुका है और शुक्रवार को इसकी बिडिंग बंद हो जाएगी. इस 1200 करोड़ रुपये के आईपीओ का प्राइस बैंड 469 से 493 रुपये के बीच तय कर दिया गया है. कंपनी लॉट में 30 शेयर रखे हैं इसलिए आपको इसमें निवेश के लिए कम से कम 14790 रुपये की जरूरत पड़ेगी. इंडिया शेल्टर फाइनेंस कॉर्पोरेशन लिमिटेड हाउसिंग फाइनेंस के क्षेत्र में काम करती है. ISFC छोटे शहरों और कस्बों के सैलरीड और सेल्फ-एंप्लॉयड लोगों को होम लोन और लोन अगेंस्ट प्रॉपर्टी देती है.
#indiashelterfinanceIPO #Housingsector #ipo #indiashelter #indiashelteripo #iporeview
~PR.147~PR.100~
#indiashelterfinanceIPO #Housingsector #ipo #indiashelter #indiashelteripo #iporeview
~PR.147~PR.100~
Category
🗞
NewsTranscript
00:00 Hi this is Bhavna and you are watching Good Returns.
00:02 India Shelter Finance's IPO has been opened from today i.e. Wednesday.
00:06 You can place a bidding on this till Friday.
00:09 The price plan of this Rs 1200 crore IPO is between Rs 479 to Rs 493.
00:15 The company has 30 shares in the lot.
00:18 So, if you want to invest in this, you will need at least Rs 14,790.
00:25 India Shelter Finance works in the sector of Corporation Limited Housing Finance.
00:30 It provides loans for building houses, remodelling, addition and buying land.
00:34 And also provides loans against property.
00:38 The company's IPO is getting a good response in the grey market.
00:43 So, it is expected that the company's IPO can give good returns to investors.
00:50 The company's Rs 1200 crore IPO has a fresh issue of Rs 800 crore.
00:54 And the offer for sale will be of Rs 400 crore.
00:58 If we see according to T+3 rules, the allotment of shares will be done on 18 December 2023.
01:05 And those who will not get the subscription will get the refund on 19 December.
01:10 The shares will be transferred to the DMAT account on 19 December.
01:13 NSC and BSC will be listed on both.
01:17 And it is expected to be listed on 20 December.
01:20 ISFC provides home loans and loans against property to self-employed people in small cities and towns.
01:26 But the company's presence is mostly in tier 2 and tier 3.
01:31 So, today to talk in more detail about this IPO,
01:35 the company's CEO and MD Mr. Rupinder Singh and the company's CFO Mr. Ashish Gupta are joining us.
01:42 We will talk about the company's background, where the IPO will be used,
01:46 we will talk about all these things in this conversation.
01:49 So, Mr. Rupinder and Mr. Ashish, welcome.
01:52 First of all, we will try to understand the company's background.
01:56 Thank you for inviting me to your channel.
01:59 I would like to shed some light on my company.
02:03 India Shelter Finance Corporation was formed in 2010.
02:07 And the focus was very clear that we have to cater the affordable housing segment.
02:12 In which the categorization was also done that there are tier 2 and tier 3 markets,
02:17 where the self-employed people who are outside the banking ecosystem,
02:21 who are not generally entertained by the banking,
02:23 sometimes their financial papers are not complete,
02:26 their banking habits are not so strong and there is a requirement for engineering,
02:30 still they have dreams to fulfill them, such a finance company that can support them.
02:35 So, with this theme, this thought, this company was formed and was established.
02:41 And our effort is to take it forward.
02:44 In the last 13 years, we have underrated more than 1.5 lakh customers.
02:49 And today, if we talk about it, we have 65,000 online customers in today's life.
02:55 And the book size is 5100 crores.
02:58 From the very beginning, the focus has been on profitability and has been in the company.
03:04 The asset quality has been maintained very well.
03:06 So, if we talk about the figure, September 30, 2023,
03:11 the company's balance sheet, which we will say is the asset under management,
03:15 is of 5100 crores.
03:17 And if we talk about the profit, it is a profit of 110 crores.
03:20 And if we talk about return on assets, it is more than 4% return on assets
03:24 and more than 16% return on equity.
03:26 If you want to do a quality measure of any company, any book,
03:31 then you should look at the GNP number in it.
03:33 From the beginning, our focus has been very good that there should be good customer systems.
03:37 We should always keep them engaged.
03:39 And where there is a need for collection, there should be a follow-up mechanism.
03:42 So, we are also seeing its results.
03:44 Today, if we look at the results of September,
03:49 the GNP number is about 1.1% which is maintained.
03:54 So, the company is improving its day-by-day strength
03:58 and is trying to make its niche segment in the market.
04:02 So, giving a good turnaround time, giving good customer service
04:05 and opening a branch near the customer is the thought process
04:09 through which we are able to leverage ourselves.
04:11 But sir, I would like to ask you that your main focus is on first-time borrowers.
04:18 So, what is the scope of this?
04:20 Don't you think that because there are first-time borrowers,
04:22 the market of the company becomes a little limited?
04:26 It is like this that we have more than 70% first-time mortgage borrowers.
04:31 Because the market we go to, banks do not entertain them there.
04:36 It is so expected.
04:38 Sometimes they feel that their scope of work is beyond their properties.
04:46 So, due to this, they do not get support outside the banking ecosystem.
04:52 So, even now, you see, the focus of the maximum home loan institution in India
04:59 is after the top 20-25 cities, it is a little conservative outside it,
05:04 there is a lot of control, etc.
05:06 So, we have a very big opportunity of 5K.
05:08 The maximum share of the country is there and it is not that there is no aspiration of home.
05:12 Infrastructure is developing day in day out, new markets are being created.
05:16 So, we are getting a lot of support from there.
05:19 And the customers who are on our book, they also get a lot of new customers.
05:24 This is a very big strength that is being built day in day out.
05:26 And this is not the reason that if you look at the numbers,
05:29 then the number of the last 3-4 years, which is also in front of you,
05:31 that 40% growth has been given in the last year and 10 years and then it is maintaining well.
05:36 Right, right.
05:37 What is the average ticket size of Ashish's loan and what are the interest rates?
05:42 The segment in which we work, the properties that come to us,
05:46 the value of the property is around 25-30 lakhs.
05:50 And the funding that we provide on that property, on an average,
05:53 we provide around 9-10 lakhs of funding.
05:56 And the ticket size of our loan is 9-10 lakhs.
06:00 But overall, if you see, we focus on the segment from 5 lakhs to 30 lakhs.
06:07 And what is the interest rate?
06:10 For interest rates, we basically have 3 products.
06:14 The first product is of affordable housing finance,
06:17 where we get funding at a concessional rate from the HVC.
06:21 We charge around 10-15% rate on the first month.
06:25 And in our other home loans, we charge around 13% rate on that.
06:30 And the third product is loan against property for business purposes,
06:35 we charge around 14% interest on that.
06:38 So, collectively, on an average, our interest comes to around 14.5%.
06:43 14.5%, perfect, perfect.
06:46 Recently, the RBI's decision was made to increase the risk weightage.
06:51 What impact did that have on your customers?
06:55 Did the borrowing cost increase?
06:57 What are the scenarios that you are seeing now?
07:01 The RBI's circular, the two things that RBI focused on,
07:06 were unsecured lending and consumption-based lending.
07:11 Basically, the RBI's segment was to discourage personal loans in the market.
07:16 Which is an emphasis on RBI in that particular segment.
07:19 If you look at the RBI's business, it is altogether different.
07:24 It is in contrast to, for example, we do business in secure lending,
07:27 which has defined end-use.
07:29 In which either the customer has to purchase the property or invest money for the business.
07:33 Right.
07:34 There is no direct impact on us.
07:36 So, the bank that we are lending, there will be no risk-rate change on that.
07:40 But since the bank's risk-rate will not change,
07:43 we don't expect that our cost of loan from the bank will have any impact.
07:47 Or the customer that we are lending, there will be no impact on that.
07:51 Right. That's right.
07:53 Mr. Rupinder, the majority of the company's loan book is from three states.
07:59 Rajasthan, Maharashtra, and Madhya Pradesh.
08:01 Asset under management is also from these three states,
08:05 which is your majority share, so is there anything big or specific
08:09 reason that your presence is in these three states?
08:14 Because your presence is in overall 15 states.
08:17 Yes.
08:18 So, you are focusing more on these three.
08:20 Yes. When we started the business 13 years ago,
08:24 we started the business from Rajasthan.
08:26 And a business like mortgage does not happen overnight.
08:30 You have to show market presence.
08:32 You have to create reach from the customers there.
08:35 You have to open branches.
08:36 So, the states where we have opened the business,
08:39 we have seen good growth there.
08:41 Because Rajasthan was the first state,
08:43 you will see the most concentration in Rajasthan.
08:46 It is a growing stage.
08:47 Yes, obviously.
08:48 It is increasing.
08:49 Apart from this, when we opened Maharashtra and MP,
08:52 there was the same growth there.
08:54 And we went to the south about 6 years ago,
08:57 there also started getting traction.
08:59 So, in the first three states, 100% business was there,
09:01 8 years ago.
09:02 And 12 years ago, only 100% business was there in Rajasthan.
09:06 Now, in these three states, there is only 60% left.
09:08 Although, growth is still going on here.
09:10 In the coming time, you will see,
09:12 their concentration will decrease slowly.
09:14 And the new states,
09:15 because there is also a development there,
09:17 there is also growth there.
09:18 So, this distribution and dilution will happen in a way.
09:22 So, you will find this in the south and in the rest of the northern states.
09:26 There also, day by day, their growth percentage is increasing.
09:30 So, today, 61% in these three states,
09:32 you will see, after a while, after a few quarters,
09:35 61% will be below 60%, then below 50%.
09:38 And eventually, it will be evenly distributed in the rest of the 15 states.
09:42 Yes, this is a long business.
09:43 It takes time to do this.
09:44 This is not an overnight process.
09:46 Right.
09:47 Ashish ji, where is the company going to use the money collected from the IPO?
09:54 What are some plans for that?
09:56 So, the money from the IPO,
09:58 we will use it to strengthen our capital base.
10:01 So, as of now, our company's net worth is around Rs. 1,172 crores.
10:04 So, this is the total size of Rs. 1,200 crores.
10:07 In this, Rs. 800 crores is the primary issuance,
10:09 which will be given to the company.
10:11 And Rs. 400 crores is the offer for sale,
10:13 which will go to the existing shareholders,
10:15 who are selling their shares.
10:17 So, the capital of Rs. 800 crores
10:19 will help the company to improve its leverage.
10:22 So, as of now, the company's leverage,
10:24 if we see, it is around 3.5 times.
10:27 So, if we pressurize,
10:28 our leverage will be around 2.25 times.
10:31 So, we will get a run-day of around 4 years,
10:33 on which we will be able to grow our business.
10:36 So, the rating agencies of the company,
10:38 they expect that the leverage of the company
10:41 should be around 4.5 times.
10:44 So, when this capital comes,
10:45 we will get a little bit of space in the leverage,
10:48 and then we will have a sufficient run-day for the next 4 years.
10:53 Right.
10:54 What are the company's plans ahead?
10:56 What are the growth plans?
10:57 How do you see the company,
10:59 how will the company grow in the next 5 years?
11:02 Are there any new products that you are going to launch?
11:06 We are a housing finance company.
11:09 Our core focus is in this category,
11:11 home loans, loan against property.
11:13 The ratio of home loans will be 60%,
11:16 and the ratio of loan against property will be 40%.
11:18 If you talk about the ratio.
11:20 We have developed an expertise,
11:22 and we have created a niche,
11:23 which is of tier 2-tier 3 market.
11:25 To cater that segment,
11:27 which is just sitting on the words of the financial ecosystem,
11:31 and it will be included in it.
11:33 This thought process will remain.
11:34 So, our thought is that,
11:36 from the way we have developed a branch network,
11:38 we have gained our presence in 15 states.
11:40 How to take it deeper,
11:42 so that the trends we have shown so far,
11:46 we will continue to grow on it.
11:47 So, our focus area will remain the same.
11:49 We don't want to bring any additional product yet.
11:52 We are a housing finance company,
11:53 and our focus will remain on this.
11:55 And we feel that,
11:56 what we have done in this segment,
11:57 a lot of work is going to be done in this too.
11:59 And there are still a lot of opportunities for growth.
12:02 Already in this.
12:03 Ashish, what are your expectations from the IPO?
12:06 Because today is the first day.
12:08 So, what are the expectations?
12:09 What is the response that you are getting so far?
12:12 Overall, if you see,
12:13 like yesterday, our anchor book was opened.
12:15 So, in the anchor book,
12:16 we can see a very good response from the long-term investors.
12:19 So, the larger mutual funds,
12:21 long-term investors, overseas investors,
12:23 they have got a very good subscription.
12:25 So, we expect a similar kind of response in our IPO.
12:29 So, what we are doing here in the market,
12:32 we have completed the retail subscription,
12:34 we have subscribed to the IPO.
12:36 So, as this IPO progresses to the third day,
12:42 we see a very good subscription in the overall IPO.
12:45 Okay, Mr. Rupinder,
12:47 I would like to know three points from you,
12:50 because of which investors should invest,
12:54 investors should apply for the IPO.
12:56 Three points.
12:57 It is a very secure focused product.
13:00 Because housing is such a product.
13:02 It is secure, so there is less risk, comparatively.
13:05 It gives a good return,
13:06 because it is affordable housing, in that sense.
13:09 It is the company's vintage.
13:10 And the market in which it is working,
13:12 there is a lot of scope for growth.
13:14 So, the company has a scope to grow very far, in that sense.
13:18 And risk compared to other unsecured,
13:21 or any other lending business,
13:23 I would not like to talk about any particular function.
13:26 In comparison to that,
13:27 there is a very good risk weightage,
13:31 there is no risk weightage in control,
13:35 and there is a better opportunity.
13:36 So, for the long term,
13:38 business has always been considered sustainable for housing.
13:41 Okay, thank you so much.
13:43 And all the very best.
13:45 Thank you, sir.
13:46 Thank you, thank you so much.
13:48 So, if you want a good return in the long term,
13:52 then you can invest in this IPO.
13:54 But even after that,
13:55 GoodReturns advises you that
13:57 whenever you invest in an IPO,
14:00 or invest in the share market,
14:01 then once you take advice from your financial advisor,
14:04 and only then you invest.
14:06 That's all in this video.
14:07 If you are watching on Facebook,
14:08 then like the Facebook page.
14:09 If you are watching on YouTube,
14:10 then do not forget to subscribe to GoodReturns' YouTube channel.