India Shelter Finance Corporation Limited has completed the allotment of 23,865 equity shares under its Employee Stock Option Schemes, marking another milestone in its employee incentivization strategy. The Stakeholders Relationship Committee approved this allotment through a circular resolution passed on January 08, 2026, pursuant to the exercise of vested Employee Stock Options under the company's ESOP schemes.

Share Allotment Details

The allotment has resulted in an increase in the company's paid-up share capital, demonstrating the active participation of employees in the equity ownership program.

Scheme-wise Breakdown

The allotment was executed under two separate ESOP schemes, with varying exercise prices reflecting different grant periods.

Previous ESOP Activity

This latest allotment follows the company's earlier announcement of granting 13,73,500 stock options to eligible employees under its ESOP 2025 scheme. The November 2025 grant, approved by the Nomination and Remuneration Committee, provided employees with options exercisable within 5 years and 3 months from the date of first vesting.

Regulatory Compliance and Listing

The allotment has been executed in compliance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The newly allotted shares will rank pari-passu with existing equity shares, and the company is completing formalities for listing these shares on both NSE and BSE.

Financial Performance Context

The ESOP allotments come against the backdrop of strong financial performance by India Shelter Finance Corporation Limited:

The company's robust operational performance, with stable asset quality metrics of 1.20% Gross Stage 3 and 0.90% Net Stage 3, provides a solid foundation for its employee equity participation programs. With 4,276 employees as of Q2FY26, these ESOP schemes demonstrate the company's commitment to aligning employee interests with shareholder value creation in the growing housing finance sector.

India Shelter Finance Corporation Limited , a leading player in the affordable housing finance sector, has reported robust financial performance for the second quarter, demonstrating strong growth and strategic expansion.

Financial Highlights

The company's financial results for Q2 showcase impressive year-on-year growth:

The company's Assets Under Management (AUM) reached ₹9,252.00 Crore, marking a significant 31% increase from the previous year. This growth aligns with India Shelter Finance's strategic goal of achieving sustained AUM growth of over 30%.

Strategic Initiatives

India Shelter Finance is implementing several key strategies to drive its growth:

1. Branch Expansion: The company added 9 new branches in Q2, bringing its total geographic presence to 299 branches across 15 states. This expansion is part of its plan to deepen penetration in Tier-II and Tier-III markets.

2. Technology-Driven Underwriting: The company is leveraging technology to enhance its underwriting processes, aiming to improve efficiency and risk assessment.

3. Asset Quality Management: India Shelter Finance maintains strong asset quality with a gross NPA below 1.2%, reflecting its robust risk management practices.

4. Credit Rating: The company holds an AA- rating, which supports its growth strategy in the affordable housing segment.

Operational Performance

• Spread: The company's spread expanded by 30 basis points year-on-year to 6.4% in Q2.
• Return on Equity (ROE): ROE stood at 17.0% for the quarter, indicating efficient capital utilization.
• Cost of Funds: The cost of funds improved by 10 basis points quarter-on-quarter to 8.5%.

Market Position and Future Outlook

India Shelter Finance continues to focus on serving the underserved customer base, with 71% of its borrowers being first-time mortgage borrowers and 91% located in Tier II and Tier III cities. The company's strategy of expanding its branch network and leveraging technology for underwriting is expected to drive sustained growth in the coming quarters.

Rupinder Singh, Managing Director and CEO of India Shelter Finance Corporation, commented on the performance, stating, "We are pleased to announce that the Company delivered another quarter of sustained performance. We delivered an AUM growth of 31% YoY, reaching an AUM of Rs. 9,252 Crores. In Q2, we disbursed Rs. 931 Crores, registering a growth of 12% YoY."

As India Shelter Finance continues to execute its growth strategy, the company appears well-positioned to capitalize on the opportunities in the affordable housing finance sector, targeting sustained AUM growth of over 30% through its multi-pronged approach of branch expansion, technology adoption, and market penetration.