Mumbai: The Rs1,844 crore IPO of non-banking financial company (NBFC) IndoStar Capital Finance Ltd witnessed an overall subscription of 41% on Wednesday, the first day of the share sale.
As of 5pm, the portion of shares reserved for institutional and retail investors saw a subscription of 129% and 8%, respectively.
The portion reserved for high net-worth individuals (HNIs) did not see any subscription on the first day.
The Everstone Group-backed company has set a price band of Rs570-572 per share. 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 shares 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.
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.
On Tuesday, IndoStar Capital Finance raised Rs553 crore by selling shares to 24 institutional investors as part of its anchor book allocation. Institutional investors which 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.