IndoStar Capital Finance to launch Rs1,844 crore IPO on 9 May

Mumbai: Non-banking finance company IndoStar Capital Finance Ltd on Wednesday said it will launch its Rs1,844 crore initial public offering (IPO) on 9 May.

The NBFC’s principal lines of business include corporate lending, small and medium enterprise (SME) lending, vehicle and housing financing.

IndoStar has set a price band of Rs570-572 per share for its IPO. At the upper end of the price band, the share sale values the lender at Rs4,513 crore.

The issue closes on 11 May.

The IPO comprises a fresh issue of Rs700 crore and an offer-for-sale (OFS) of 20 million by the promoters of IndoStar Capital.

IndoStar Capital Finance was started in 2011 by private equity investors Everstone Capital, ACPI Investment Managers, Beacon India Fund and CIDB Capital. Everstone holds a 51.24% in IndoStar Capital.

The proceeds from the fresh issue will be used to augment the capital base to meet the future capital requirements of the NBFC.

As of 28 February, IndoStar Capital Finance conducted its retail operations through 71 branches across India.

The NBFC’s cumulative loans disbursed since the commencement of operations amounted to Rs22,593 crore, as of 31 December 2017.

For the nine-month period ended 31 December 2017, IndoStar Capital Finance reported total revenue and net profit of Rs585.95 crore and Rs164.08 crore, respectively.

In 2016-17, the NBFC reported a total revenue of Rs719.92 crore, up 11.8% from the previous year, according to its red herring prospectus. The lender’s profit rose by 10% to Rs210.8 crore in 2016-17 from a year earlier.