Indostar Capital Limited Ipo

About Company

Incorporated in 2009, Mumbai based IndoStar Capital Finance Limited is a leading non-banking finance company (NBFC) registered with the Reserve Bank of India as a systemically important non-deposit taking company. The company operates four principal lines of business, namely corporate lending, SME lending, vehicle financing and housing financing. It recently expanded its portfolio to offer vehicle finance and housing finance products.

IndoStar conducts its retail operations through ten branches across Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Jaipur, Surat, Ahmedabad, Pune and Indore and central support office in Mumbai.

The lenders of the company include, among others, 14 public sector banks, 13 private sector banks, 21 mutual funds and four insurance companies and other financial institutions. The distribution network includes approximately 210 personnel in its in-house sales team, and approximately 648 third-party direct sales associates (DSAs) and other third-party intermediaries.

Strengths-

1.     Strong SME lending businesses

2.   A high-quality loan portfolio with low rates of Gross NPAs and Net NPAs.

3.   Proven track record of delivering results. Between fiscal 2013 and 2017, the company's Total Credit Exposure and total revenue grew at a CAGR of 30.0% and 31.4%, respectively.

4. Access to best industry practices and international corporate governance standards due to institutional Promoter.

Company Promoters

Ø   Indostar Capital

Company financial

(Rs in millions)

Registrar to the issue

1.      Link Intime India Private Limited

Lead Managers

1.       JM Financial Limited

2.       Kotak Mahindra Capital Company Limited

3.       Morgan Stanley India Company Private Limited

4.       Motilal Oswal Investment Advisors Limited

5.   Nomura Financial Advisory and Securities      Private Limited

Objects of the Issue:

The Objects Of The Issue is to utilize the Net Proceeds from the Fresh Issue towards augmenting its capital base to meet future capital requirements.

Risk factors

1.  This being the first public issue of our Company, there has been no formal market for the Equity Shares.

2.  Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Offer unless they can afford to take the risk of losing their investment.