IndoStar Capital Finance Limited is launching its IPO from May 9 to May 11 at Rs 570 to Rs 572 per share aggregating Rs 1,844 crore. The Company intends to primarily utilize the Net Proceeds of the Fresh Issue for augmenting its capital base to meet future capital requirements, according to R Sridhar, Executive Vice-Chairman & CEO, IndoStar Capital Finance Limited.
Describing IndoStar Capital Finance Limited as a non-banking finance company “NBFC” registered with the Reserve Bank of India as a systemically important non-deposit taking company, he said it is primarily engaged in providing structured term financing solutions to corporates and loans to small and medium enterprise “SME” borrowers in India.
“We recently expanded our portfolio to offer vehicle finance and housing finance products through our wholly-owned subsidiary IndoStar Home Finance Private Limited,” he said, adding that its Net worth is Rs 1,903 Crore as on March 31, 2017 with CAGR of 15% over 6 years.
“We commenced Vehicle Finance operations from November 2017 for purchases of used or new commercial vehicles, passenger vehicles and two-wheelers. Our corporate lending business primarily consists of: Lending to mid-to-large sized corporates in manufacturing, services and infrastructure industries, by way of senior secured debt, structured financing, promoter financing and special situation funding; and Lending to real estate developers, mainly for financing project level construction of residential and commercial building projects and take-out of early-stage equity investors,” Sridhar said.
IndoStar Capital Finance Limited also provided secured loans for business purposes to small and medium size enterprises, including businessmen, traders, manufacturers and self-employed professionals from its branches located in ten key locations across India, namely Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Jaipur, Surat, Ahmedabad, Pune and Indore,” he said.
“We operate our housing finance business through our wholly-owned subsidiary IndoStar Home Finance Private Limited and provide affordable home finance to the salaried and self-employed customers for the purchase of residential properties,” he added.
The issue is being managed by JM Financial, Kotak Mahindra Capital, Morgan Stanley, Motilal Oswal and Nomura.
