India Shelter Finance Corporation IPO: The Good and The Bad

About the company

India Shelter Finance Corporation is an affordable housing finance company primarily providing housing loans and loans against residential properties.

IPO details

Post IPO

Financial history

The positives

A solid annual AUM growth of around 41 per cent over the last three years.

The positives

Low LTV ratio. It has maintained an average loan-to-value (LTV) of 50 per cent as of September 30, 2023.

The negatives

High NPAs. It reported an average net NPA of 1.3 per cent in the last three years and a net NPA of 2.1 per cent in FY22.

The negatives

The housing loan sector is highly competitive.

Risk report

Is the company’s capital adequacy ratio more than 15 per cent? Yes, its capital adequacy ratio stood at 49 per cent as of September 30, 2023.