IndoStar Capital Finance IPO: Around Rs553 crore raised from anchor investors

Mumbai: Non-banking financial company IndoStar Capital Finance Ltd, on Tuesday said it has raised around Rs553 crore by selling shares to institutional investors as part of its anchor book allocation, a day before its initial public offering (IPO) opens.

Shares were allocated to 24 investors at Rs572 apiece, the upper end of the price band of Rs570-572 for the IndoStar IPO. Institutional investors that participated in the anchor book allocation include BNP Paribas Arbitrage, SBI MF (Mutual Fund), HDFC MF, Aditya Birla Sunlife MF, HDFC Life Insurance, Edelweiss AIF and Eastbridge, among others.

The Rs1,844 crore IPO of IndoStar will open on 9 May and close 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.

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