Indostar Capital gets Sebi nod for Rs2,000 crore IPO
IndoStar Capital IPO comprises issuance of fresh shares worth Rs700 crore and existing shareholders will offer up to 2 crore shares
New Delhi: Indostar Capital Finance has received approval of Securities and Exchange Board of India (Sebi) to go-ahead to raise an estimated Rs2,000 crore through initial public offering (IPO).
Indostar Capital Finance, a non-banking finance company, had filed IPO papers with the markets regulator in January and received “observations” on 3 April, according to the latest updates on the Sebi website.
Sebi’s observations is necessary for any company planning to launch public issues, such as initial public offerings (IPOs) follow-on public offerings (FPOs) and rights issues.
Going by the draft papers, IndoStar Capital Finance’s IPO comprises issuance of fresh shares worth Rs700 crore and existing shareholders will offer up to 2 crore shares. The company plans to utilize the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements.
The Indostar Capital IPO will enhance the NBFC’s brand name and create public market for its equity shares in the country.
JM Financial, Kotak Mahindra Capital Company, Morgan Stanley India Co., Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt. Ltd will manage the Indostar Capital IPO.
IndoStar Capital was capitalized 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. Indostar Capital recently expanded its portfolio to offer vehicle finance and housing finance products.
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