IndoStar Capital Finance sets IPO price band, issue opens on May 9

Non-banking finance company IndoStar Capital Finance on Wednesday set the price band for forthcoming initial public offering at Rs 570 to Rs 572 per share. The Rs 1,844-crore issue will hit Dalal Street on May 9 and end on May 11.

The issue of Everstone Capital-backed NBFC will comprise a fresh issue aggregating up to Rs 700 crore and an offer for sale (OFS) of up to 2,00,00,000 equity shares. At the upper limit of the price band, the OFS amounts to Rs 1,144 crore. The anchor investor allocation will take place on May 8.

The company intends to primarily utilise the net proceeds of the fresh issue for augmenting its capital base to meet future capital requirements.


Promoters intends to sell up to 18,508,407 equity shares, while other shareholders in the NBFC's will offer up to 1,491,593 equity shares in the OFS.
Current shareholders include Everstone Capital, Beacon India Fund, ACPI Investment Managers and CIDB Capital.

The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in January and received "observations" from the regulator on April 3, as per the latest update with the markets watchdog.

JM Financial, Kotak Mahindra Capital Company, Morgan Stanley India Company, Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt Ltd will manage the company's public issue.

IndoStar Capital Finance offers structured term financing solutions for corporates, and loans to small and medium enterprise borrowers in India.
It has recently expanded its portfolio to offer vehicle finance and housing finance products.

The housing finance business is operated through company’s wholly-owned subsidiary IndoStar Home Finance, which commenced operations in September 2017.