The shares of this smallcap company jumped upto 2 percent after Goldman Sachs, SBI Life Insurance and ICICI Prudential Life Insurance bought shares in the company via Bulk Deals. On a YTD basis, the stock has delivered more than a 30 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 7,903 crores, the shares of India Shelter Finance Corporation Ltd started Tuesday’s trading session on a higher note at Rs. 740 compared to its previous close of Rs. 732.90.
During the trading session, the shares hit a high of Rs. 751, gaining around 2 percent and are currently trading at Rs. 727 apiece.
What Happened:
According to the BSE Bulk Deals data, the American multinational investment bank and financial services company Goldman Sachs through Goldman Sachs Funds Goldman Sachs India Equity Portfolio bought over 7.4 lakh equity shares in India Shelter Finance Corporation on Monday via a block deal at the cost of approximately Rs 56 crores.
SBI Life Insurance company also acquired 6.7 lakh shares for Rs 50 crores, while ICICI Prudential Life Insurance company purchased 7.7 lakh shares for Rs 58 crores.
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However, Nexus Ventures III Limited and Nexus Opportunity Fund II Limited sold over 49.53 lakh and 14.46 lakh shares, respectively.
Financials:
Looking at the company’s financial statements, the Net Total Income grew by around 8 percent from Rs. 170.2 crores during the March quarter to Rs. 184.5 crores in the June quarter. In addition, the net profits jumped by 7 percent from Rs. 77.9 crores to Rs. 83.5 crores during the same period.
Moreover, Assets Under Management (AUM) reached Rs. 6,509 crores, representing a 37 percent year-on-year growth, while disbursements amounted to Rs. 715 crores, showing a 23 percent year-on-year increase.
Important Financial Ratios:
As of June 30, 2024, the Gross Stage 3 and Net Stage 3 asset ratios stood at 1.1 percent and 0.9 percent, respectively. This is compared to 1.0 percent and 0.8 percent for Gross Stage 3 and Net Stage 3 assets as of June 30, 2023.
Strategic Focus:
India Shelter aims to strengthen its position as a leading provider of affordable housing finance, particularly targeting self-employed individuals and first-time home buyers in Tier 2 and Tier 3 cities. Approximately 90 percent of its borrowers are from these regions, with a significant focus on low-income groups.
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Company Proflie:
Incorporated in 1998, India Shelter Finance Corporation Limited (ISFCL) is an affordable housing finance company that primarily provides small and mid-ticket home loans.
The company caters to the unbanked and under-banked sections of society, with a focus on first-time home loan borrowers in the low and middle-income groups in Tier II and Tier III cities.
Written By Vaibhav Patil
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