SRG Housing Finance IPO Details

IPO closing date rescheduled to August 28, 2012 to compensate for a proposed two-day nationwide strike in banks.

MUMBAI, 23rd AUGUST 2012: SRG Housing Finance Limited, a growing housing finance company with registered office at Udaipur in Rajasthan, has entered the capital markets on 22nd August 2012 with a public issue of 35,04,000 of Rs 10 each. The Issue price for this IPO to be listed on SME platform of BSE has been fixed at Rs 20 per equity share of Rs 10 each. The Issue, which was originally scheduled to close on 24th August 2012 will now close on August 28, 2012 due to a two-day nationwide strike in banks. Out of this public issue of 35,04,000 equity shares, 4,98,000 equity shares are reserved for Promoters and 4,08,000 equity shares are reserved for Market Makers, leaving a net public issue of 25,98,000 equity shares. The Issue and Net Issue will constitute 43.36 per cent and 32.15 per cent respectively of the post Issue paid equity share capital of the Company. Aryaman Financial Services Limited is the Lead Manager and Sharex Dynamic (I) Pvt. Limited is the Registrar for the Issue. This will be the 7th SME issue on BSE SME platform.

The Company is primarily engaged in the business of providing housing finance for home ownership, by offering individual home loans and loans against property. Presently, it has one head office and 3 satellite centers located in Rajasthan and the Company is targeting to open another 10 satellite centers which are to be located in tier 2 cities, tier 3 cities, District and Tehsil head quarters and at the peripheries of tier 1 cities. These are their key target markets, based on their belief that they are underserved by larger Housing Finance Companies and banks.

The outstanding loan portfolio of SRG Housing Finance Ltd has grown at a CAGR of 24.13% from Rs 318.89 lakhs as of March 31, 2008 to Rs 757.13 lakhs as of March 31, 2012. At the same time, its profit after tax (PAT) has grown at a CAGR of 30.43% over a four year period from Rs 11.13 lakhs for Fiscal 2008 to Rs 32.21 lakhs for Fiscal 2012. Well recognized brand in Rajasthan with an established track record, strong senior management team backed by experienced promoters, direct customer contact and niche marketing strategy are some of the key competitive strengths of the Company.

The Company proposes to augment its capital base and provide for its fund requirements for increasing its operational scale with respect to disbursement of housing and related loans activities, through this Issue. SRG Housing Finance Ltd propose to augment its capital base by Rs 635 Lakhs and utilize the funds raised from the same to further increase its operational scale of such business activities and assets, which will consequently result in an increase in its net worth and enable the Company to meet its future capital adequacy requirements. It will further help the Company to develop close relationships with individual households and enhance customer relationships. The Company is in compliance with the capital adequacy norms of the NHB Directions 2010.