India Shelter Finance Corporation Limited Announced its Initial Public Offer of ₹1200 crore to open on December 13, 2023 Sets Price Band fixed at ₹ 469 to ₹ 493 per Equity Share of face value of ₹ 5 each

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Mumbai, 08th December 2023 (GNI): L-R: Mr. Hardik Doshi (Director, Financial Institutions Group, Kotak Mahindra Capital Company Limited); Mr. Pritish Kandoi (EVP & Head BFSI, Corporate Finance, ICICI Securities);  Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited); Mr. Ashish Gupta (CFO, India Shelter Finance Corporation Limited); Mr. Arvind Vashistha (Managing Director, Head of India Equity Capital Markets, Citigroup Global Markets India Private Limited); Mr. Ankur Aggarwal (Director, Investment Banking, Ambit Private Limited) at the press conference in connection to India Shelter Finance Corporation’s Initial Public Offering (IPO) during the press conferencein Mumbai – photo by Sumant Gajinkar GNI

Mumbai, 08th December 2023 (GNI): Mr. Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited) addressing the gathering at the press conference in connection to their Initial Public Offering (IPO in Mumbai – photo by Sumant Gajinkar GNI

India Shelter Finance Corporation Limited Announced its Initial Public Offer (IPO) of ₹1200 crore to open on December 13, 2023

·         Price Band fixed at ₹ 469 to ₹ 493 per Equity Share of face value of ₹ 5 each (“Equity Share”);

·         Bid /Offer will open on Wednesday, December 13, 2023 and close on Friday, December 15, 2023. The Anchor Investor Bidding Data Shall be Tuesday, December 12, 2023

·         Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter

India Shelter Finance Corporation Limited (“India Shelter” or the “Company”), a retail focused affordable housing finance company with an extensive distribution network comprising 203 branches as of September 30, 2023 and a scalable technology infrastructure across our business operations and throughout the loan life cycle, will open its Bid / Offer in relation to its initial public offer of Equity Shares on Wednesday, December 13^, 2023.

The total offer size of Equity Shares of face value ₹ 5 each aggregating up to ₹ 12,000 million [₹ 1200 crore] comprises fresh issue aggregating up to  ₹ 8,000 million  [₹ 800 crore ] and Offer for Sale aggregating up to 4,000 million [₹ 400 crore] by Selling Shareholders.

The Price Band of the Offer has been fixed at₹ 469 to ₹ 493 Per Equity Share. Bids can be made for a minimum of 30 Equity Shares and in multiples of 30 Equity Shares thereafter, announced by . Mr Rupinder Singh (MD & CEO, India Shelter Finance Corporation Limited) at the media conference in Mumbai.

The Anchor Investor Bidding Date shall be Tuesday, December 12, 2023.  The Bid/Offer will open on Wednesday, December 13, 2023 for subscription and will close on Friday, December 15, 2023.

The Company proposes to utilise net proceeds from fresh issue of Equity Shares to meet future capital requirements towards lending estimated to ₹ 6,400 million [₹ 640 crore] and balance amount towards general corporate purpose. (The “Object of Issue”).

The offer for sale comprises of Equity shares aggregating up to ₹ 0.2 million by Catalyst Trusteeship Limited (as trustee of MICP Trust), aggregating up to ₹ 1712.9 million [up to ₹ 171.29 crore] by Catalyst Trusteeship Limited (as trustee of Madison India Opportunities Trust Fund), , aggregating up to ₹ 544.30 million [₹ 54.43 crore] by Madison India Opportunities IV, , aggregating up to ₹ 317.6 million [₹ 31.76 crore] by MIO Starrock and  aggregating up to ₹ 1,425 million [₹ 142.5 crore] by Nexus Ventures III, Ltd.  (Collectively, the “investor selling shareholders” or the “Selling Shareholders”) (“the Offer for Sale”).

This Equity Shares are being offered through the red herring prospectus of the Company dated December 7, 2023 filed with Registrar of Companies, Delhi and Haryana at New Delhi (the “RHP”). and are proposed to be listed on the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

ICICI Securities Limited, Citigroup Global Markets India Private Limited, Kotak Mahindra Capital Company Limited and Ambit Private Limited are the Book Running Lead Managers to the offer.

The IPO Structure: The Offer is being made in terms of Rule 19(2)(b) of the SCRR, read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such portion, the “QIB Portion”), provided that our Company in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors and the basis of such allocation will be on a discretionary basis by our Company in consultation with the BRLMs (the “Anchor Investor Portion”), of which one-third shall be reserved for the domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”) in accordance with the SEBI ICDR Regulations. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than the Anchor Investor Portion) (the “Net QIB Portion”).

Further, 5% of the Net QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, subject to valid Bids being received at or above the Offer Price, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors (“Non-Institutional Portion”) (out of which one-third of the portion available to Non-Institutional Investors will be available for allocation to Bidders with an application size of more than ₹ 200,000 and up to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion will be available for allocation to Bidders with an application size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Bidders in the other sub-category of Non-Institutional Portion).

Further, not less than 35% of the Offer shall be available for allocation to Retail Individual Investors (“Retail Portion”), in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Bidders (except Anchor Investors) shall mandatorily participate in the Offer only through the Application Supported by Blocked Amount (“ASBA”) process and shall provide details of their respective bank account (including UPI ID for UPI Bidders using UPI Mechanism) in which the Bid Amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or the Sponsor Banks, as applicable. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. See “Offer Procedure” beginning on page 471.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.

About India Shelter Finance Corporation: India Shelter Finance Corporation is a retail-focused, affordable housing finance company. Primarily serving the self-employed in low and middle-income groups, especially first-time home loan takers in Tier II and Tier III cities, the company offers affordable housing loans. The company has an extensive and well-established network of 203 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka and Gujarat. The firm also has a presence in states that cover 94% of the affordable housing finance market in India as on March 2023.

India Shelter Finance integrates advanced technology and analytics throughout its operations, enhancing every stage of the customer lifecycle. This integration spans from on-boarding and underwriting to asset quality monitoring, collections, and customer services. The company has seen a significant CAGR growth of 40.8% between FY 2021 and FY 2023 in assets under management. The AUM was Rs. 51,806.89 million as of H1FY24. A notable aspect of India Shelter Finance Corporation is its emphasis on empowering women in financial matters. As of September 30, 2023, 97.9% of its loans included women as borrowers. India Shelter Finance Corporation’s credit and risk management strategies, supported by advanced technology and data analytics, have effectively maintained asset quality.

As of September 30, 2023, the Company obtained long-term funding from a diversified lender base comprising over 37 counterparties, including 24 scheduled commercial banks. We have a healthy credit rating of ICRA A+ (stable) from ICRA Limited and CARE A+ (Positive) from CARE Limited, as of September 30, 2023.

The Company has a professional and experienced management team with experience in the banking and finance sectors. Mr. Rupinder Singh, Managing Director and Chief Executive Officer, has extensive experience in mortgage financing. Mr. Anil Mehta, is Individual Promoter and WestBridge Crossover Fund, LLC and Aravali Investment Holdings are Corporate Promoters, and other Shareholders include Nexus Ventures III, Ltd., MIO Starrock and Madison India Opportunities IV (Madison India Capital).

The RHP is made available on the websites of SEBI at www. sebi.gov.in as well as on the websites of the book running lead managers (“BRLMs”) at www.icicisecurities.com, www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm, www.investmentbank.kotak.com and www.ambit.co, the websites of the National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”) at www.nseindia.com and www.bseindia.com, respectively.ends GNI