Indostar Capital Finance debuts with 5% premium at Rs 600.60
Non-banking finance firm Indostar Capital Finance started off trade at Rs 600.60 on the National Stock Exchange, a 5 percent premium to the issue price of Rs 572.
The stock price hit a high of Rs 606.80 and low of Rs 591.10 after good opening.
At 10.06 hours IST, it was trading at Rs 591.45, up 3.4 percent over issue price on the NSE.
IndoStar Capital Finance offers structured term financing solutions for corporates, and loans to small and medium enterprise (SME) borrowers in India. It has recently expanded its portfolio to offer vehicle finance and housing finance products.
The Rs 1,844-crore initial public offer was subscribed 6.8 times during May 9-11.
The IPO consisted of fresh issue of up to Rs 700 crore and an offer for sale of up to 2 crore equity shares (including anchor portion of 9,671,328 equity shares).
The non-banking finance company will use issue proceeds for augmenting capital base to meet future capital requirements while money raised through offer for sale will go to selling shareholders.