Business description – IndoStar Capital Finance is a non-deposit taking, non-banking finance company (NBFC) registered with the Reserve Bank of India. The company is primarily engaged in providing bespoke structured term financing solutions to corporates and loans to small and medium enterprise (SME) borrowers in India.
The company has recently expanded its portfolio to offer vehicle finance and housing finance products:
- Corporate lending – The business primarily consists of (i) 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 (ii) 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.
As of December 31, 2017, the Corporate Lending Credit Exposure amounted to INR39,693.97 million.
- SME lending – Started in 2015, the SME lending business involves extending secured loans for business purposes to small and medium size enterprises.
The company currently provides SME lending loans from 10 branches located in Mumbai, Delhi, Chennai, Bengaluru Hyderabad, Jaipur, Surat, Ahmedabad, Pune and Indore. As of December 31, 2017, the SME Lending Credit Exposure amounted to INR11,733.97 million.
- Vehicle finance – The business primarily involves providing financing for purchases of used or new commercial vehicles, passenger vehicles and two-wheelers.
The company commenced vehicle finance business in November 2017. As of December 31, 2017, the Vehicle Finance Credit Exposure amounted to INR143.01 million.
- Housing finance – The housing finance business comprises two business lines, namely (i) affordable housing finance (ii) retail housing finance.
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It operates housing finance business through wholly owned subsidiary IndoStar Home Finance Private Limited. The affordable housing finance business line primarily involves loans to the salaried and self-employed customers for housing purposes where the property cost is typically up to INR5.0 million. The retail housing business line primarily extends loans to salaried and self-employed customers for the purchase of residential properties.
As of December 31, 2017, the Housing Finance Credit Exposure amounted to INR145.95 million.
Promoters of IndoStar Capital Finance – IndoStar Capital
|IndoStar Capital Finance IPO details|
|Subscription Dates||9 – 11 May 2018|
|Price Band||INR570 – 572 per share|
|Fresh issue||INR700 crore|
|Offer For Sale||20,000,000 shares (INR1,140 – 1,144 crore)|
|Total IPO size||INR1,840 – 1,844 crore|
|Minimum bid (lot size)||26 shares|
|Face Value||INR10 per share|
|Listing On||NSE, BSE|
Use of funds
- Augmenting capital base to meet future capital requirements
- General corporate purposes
|IndoStar Capital’s financial performance (in INR crore)|
|Profit after tax||112.1||149.0||191.6||210.8||164.1|
|Net margin (%)||28.2||28.2||29.7||29.3||28.0|
IndoStar Capital Finance Contact Details
IndoStar Capital Finance Limited
One Indiabulls Center, 20th Floor
Tower 2A, Jupiter Mills Compound
Senapati Bapat Marg, Mumbai 400 013
Phone: +91 22 4315 7000
Fax: +91 22 4315 7010
Registrar of IndoStar Capital IPO
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083
Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Valuation of IndoStar Capital Finance (Based on latest FY)
Earnings Per Share (EPS): INR26.31
Price/Earnings (P/E) ratio: 21.66 – 21.74
Return on Net Worth (RONW): 11.08%
Net Asset Value (NAV): INR263.96 per share
IndoStar Capital Finance IPO Subscription Details
|Category||Shares offered||Subscription (no.|
of times, at 5 pm)
|Day 1||Day 2||Day 3|
IndoStar Capital Finance IPO Allotment Status
IndoStar Capital Finance IPO allotment status is now available on Link Intime’s website.
Click on this linkto get allotment status.
Listing Performance of IndoStar Capital Finance
IPO Opening Date: 9 May 2018
IPO Closing Date: 11 May 2018
Finalisation of Basis of Allotment: 16 May 2018
Initiation of refunds: 17 May 2018
Transfer of shares to demat accounts: 18 May 2018
Listing Date: 21 May 2018
Listing Price on NSE: INR600 per share (up 4.89% from IPO price)
Closing Price on NSE: INR586.1 per share (up 2.46% from IPO price)