IndoStar Capital files Rs 2,000-cr IPO papers with SEBI

PTI New Delhi | Updated on February 12, 2018 Published on February 12, 2018

Non-banking finance company IndoStar Capital Finance has filed draft papers with capital markets regulator SEBI to raise an estimated Rs 2,000 crore through an initial share-sale. The IPO comprises issuance of fresh shares worth Rs 700 crore. Besides, existing shareholders will offer up to 2 crore scrips, in line with the draft prospectus filed with the Securities and Exchange Board of India (SEBI).

“Our company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements,” the firm said. Besides, the company said the initial public offer (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 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 recently expanded its portfolio to offer vehicle finance and housing finance products.

Published on February 12, 2018
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