IndoStar Capital gets Sebi#39;s nod for Rs 2,000 cr IPO

April 09
21:33 2018

Non-banking finance company IndoStar Capital Finance has received markets regulator Sebi’s go-ahead to raise an estimated Rs 2,000 crore through initial public offering (IPO).

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.

Sebi’s observations is necessary for any company planing to launch public issues like initial public offer (IPO) follow-on public offer (FPO) and rights issues.

Going by the draft papers, IndoStar Capital Finance’s IPO comprises issuance of fresh shares worth Rs 700 crore. Besides, existing shareholders will offer up to 2 crore scrips.

The company plans to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements. Besides, the IPO will enhance its brand name and create public market for its equity shares in the country.

According to merchant banking sources, the IPO is expected to fetch Rs 2,000 crore.

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 was capitalised by global investors in 2011 to create an independent credit institution. Its current shareholders include Everstone Capital, Beacon India Fund, ACPI Investment Managers and CIDB Capital.

The corporate and SME-focused non-banking finance player has recently expanded its portfolio to offer vehicle finance and housing finance products.

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