IndoStar Capital Finance’s Rs 1,844 Crore IPO Opens On May 9
Non-banking financial company IndoStar Capital Finance Ltd.’s three-day initial public offer opens on May 9.
A combination of fresh issue and offer for sale, the IPO would see Everstone Capital-led promoter group IndoStar selling 1.85 crore equity worth Rs 1,058 crore at the upper end of the price band. About 1.49 crore shares will also be offloaded by the other investors of the company. The price band for the offer has been fixed at Rs 570-Rs 572.
The lending firm is looking to raise Rs 700 crore through the fresh issue which will be used to augment its capital base and meet future capital requirements, according to its red herring prospectus.
JM Financial, Kotak Mahindra Capital Co., Morgan Stanley India Co., Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt. Ltd. are managing the offer.
About 77 percent of the company’s credit exposure comprises of corporate lending, followed by small and medium enterprises lending which accounts for another 23 percent. The company plans to grow its vehicle and housing finance businesses further.