Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

IndoStar Capital Finance Raises Rs 553 Crore From Anchor Investors

IndoStar Capital Finance Ltd. today raised Rs 553 crore from anchor investors ahead of its initial public offering that opens tomorrow.

The lender allocated 96.7 lakh shares to 24 anchor investors at Rs 572 apiece, according to an exchange filing. The anchor investors include domestic and foreign investors including BNP Paribas Arbitrage, SBI Mutual Fund, HDFC Mutual Fund, Aditya Birla Sunlife Mutual Fund, Sundaram Mutual Fund, Jupiter and Fidelity.

Before an IPO opens, shares are allotted to anchor investors, which are usually large foreign and domestic funds, to show backing for the offer by institutional investors.

Also read: IndoStar Capital Finance IPO: Here’s All You Need To Know

A consortium led by Everstone Group is eyeing a partial exit through the Rs 1,844 crore initial public offering. The IPO includes a fresh issue of Rs 700 crore and an offer for sale by existing investors to the tune of Rs 1,144 crore. The price band has been fixed at Rs 570-572 apiece.

Post the offer, promoter shareholding will fall to 58.95 percent from from 91.5 percent currently. The rest will be held by public shareholders.