Shah Investors Home Limited
Red Herring Prospectus dated September 22, 2026
Summary
Shah Investors Home Limited is proposing a fresh issue of up to 53,99,200 new shares. The price band is ₹159 to ₹167 per share.
All the amounts stated for the objects go to funding working capital requirements of the company. The amount for general corporate purposes is not yet stated.
The review found 3 points to read closely and 13 worth checking.
Read closely
- Finance and compliance heads are new or have turned over
- Director resignations
- High share of proceeds for working capital
How the capital was built
- The last priced issue of shares was on 29 Feb 2008: 2,67,000 shares to non-promoter investors at ₹150 each (₹75 in today's shares) (502 allottees, none stated as linked to the promoters), 3.4% of the pre-issue capital, at 30 times the price of the previous issue about 2 years earlier; it came about 19 years before this prospectus.
- From the first priced issue (12 Oct 1994, ₹2.5 in today's shares) to the last, the price per share rose 30 times over 13 years.
- The price band of ₹159 to ₹167 is 2.12 to 2.23 times the last issue price (₹75, 29 Feb 2008).
Conclusion
Of the 3 points to read closely, 2 concern the promoters, management and their dealings (finance and compliance heads are new or have turned over; director resignations) and 1 concerns how the IPO money will be spent. These could not be scored automatically and need reading: group entities in the same business; contingent liabilities; guarantees given for group entities. These wait for the price and the final share count: low promoter holding after the issue; issue price is a large multiple of promoters' cost. The pages to read are 355, 489 and 501.