IndoStar Capital files Rs2,000 crore IPO papers with Sebi
New Delhi: Non-banking finance company IndoStar Capital Finance has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise an estimated Rs2,000 crore through an initial public offering (IPO).
The IPO comprises issuance of fresh shares worth Rs700 crore. Besides, existing shareholders will offer up to 2 crore scrips, as per the draft prospectus filed with Sebi.
“Our company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements,” the firm said. Besides, the company said the IPO will enhance its brand name and create public market for its equity shares in the country.
According to merchant banking sources, the IPO is expected to fetch Rs2,000 crore.
JM Financial, Kotak Mahindra Capital Co., Morgan Stanley India Co., Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt. Ltd will manage the company’s public issue.
IndoStar Capital was capitalised by global investors in 2011 to create an independent credit institution. Its current shareholders include Everstone Capital, Beacon India Fund, ACPI Investment Managers and CIDB Capital.
The corporate and SME-focused non-banking finance player has recently expanded its portfolio to offer vehicle finance and housing finance products.