IndoStar Capital IPO

IndoStar Capital IPO

IndoStar Capital IPOBusiness description - IndoStar Capital Finance is a non-deposit taking, non-banking finance company (NBFC) registered with the Reserve Bank of India. The company is primarily engaged in providing bespoke structured term financing solutions to corporates and loans to small and medium enterprise (SME) borrowers in India. The company has recently expanded its portfolio to offer vehicle finance and housing finance products:

  • Corporate lending – The business primarily consists of (i) lending to mid-to-large sized corporates in manufacturing, services and infrastructure industries, by way of senior secured debt, structured financing, promoter financing and special situation funding and (ii) lending to real estate developers, mainly for financing project level construction of residential and commercial building projects and take-out of early-stage equity investors. As of December 31, 2017, the Corporate Lending Credit Exposure amounted to INR39,693.97 million.
  • SME lending – Started in 2015, the SME lending business involves extending secured loans for business purposes to small and medium size enterprises. The company currently provides SME lending loans from 10 branches located in Mumbai, Delhi, Chennai, Bengaluru Hyderabad, Jaipur, Surat, Ahmedabad, Pune and Indore. As of December 31, 2017, the SME Lending Credit Exposure amounted to INR11,733.97 million.
  • Vehicle finance – The business primarily involves providing financing for purchases of used or new commercial vehicles, passenger vehicles and two-wheelers. The company commenced vehicle finance business in November 2017. As of December 31, 2017, the Vehicle Finance Credit Exposure amounted to INR143.01 million.
  • Housing finance – The housing finance business comprises two business lines, namely (i) affordable housing finance (ii) retail housing finance. It operates housing finance business through wholly owned subsidiary IndoStar Home Finance Private Limited. The affordable housing finance business line primarily involves loans to the salaried and self-employed customers for housing purposes where the property cost is typically up to INR5.0 million. The retail housing business line primarily extends loans to salaried and self-employed customers for the purchase of residential properties. As of December 31, 2017, the Housing Finance Credit Exposure amounted to INR145.95 million.
Promoters of IndoStar Capital Finance - IndoStar Capital
IndoStar Capital Finance IPO details
Subscription Dates 9 - 11 May 2018
Price Band INR570 - 572 per share
Fresh issue INR700 crore
Offer For Sale 20,000,000 shares (INR1,140 - 1,144 crore)
Total IPO size INR1,840 - 1,844 crore
Minimum bid (lot size) 26 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On NSE, BSE
Use of funds
  • Augmenting capital base to meet future capital requirements
  • General corporate purposes
IndoStar Capital's financial performance (in INR crore)
FY2014 FY2015 FY2016 FY2017 9M FY2018
Total revenues 396.9 528.1 644.1 719.9 585.9
Total expenses 227.7 302.0 350.8 396.9 336.0
Profit after tax 112.1 149.0 191.6 210.8 164.1
Net margin (%) 28.2 28.2 29.7 29.3 28.0

IndoStar Capital Finance Contact Details

IndoStar Capital Finance Limited 
One Indiabulls Center, 20th Floor
Tower 2A, Jupiter Mills Compound
Senapati Bapat Marg, Mumbai 400 013

Phone: +91 22 4315 7000
Fax: 
+91 22 4315 7010
Email:
[email protected]
Website: www.indostarcapital.com

Registrar of IndoStar Capital IPO

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai - 400 083

Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website: http://www.linkintime.co.in

Valuation of IndoStar Capital Finance (Based on latest FY)

Earnings Per Share (EPS): INR26.31

Price/Earnings (P/E) ratio: 21.66 - 21.74

Return on Net Worth (RONW): 11.08%

Net Asset Value (NAV): INR263.96 per share

IndoStar Capital Finance IPO Subscription Details

Category Shares offered Subscription (no. of times, at 5 pm) 
Day 1 Day 2 Day 3
QIB 6,435,086 1.28 1.80 16.08
NII 4,842,106 0.00 0.03 6.90
Retail 11,298,246 0.08 0.34 1.23
Total 22,575,438 0.40 0.68 6.68

IndoStar Capital Finance IPO Allotment Status

IndoStar Capital Finance IPO allotment status is now available on Link Intime's website. Click on this link to get allotment status.

Listing Performance of IndoStar Capital Finance

IPO Opening Date: 9 May 2018

IPO Closing Date: 11 May 2018

Finalisation of Basis of Allotment: 16 May 2018

Initiation of refunds: 17 May 2018

Transfer of shares to demat accounts: 18 May 2018

Listing Date: 21 May 2018

Listing Price on NSE: INR600 per share (up 4.89% from IPO price)

Closing Price on NSE: INR586.1 per share (up 2.46% from IPO price)

24 COMMENTS

  1. Good IPO , Listing With Near 850-900, Because of last long time IPO Received and apply by all, and wait for listing as a Premium high

  2. My self applied for 7 times and allotted nil in retail category. When subscribed two times in retail category, how it is possible for nil allotment. Any gambling and mode of allotment may be informed.

  3. It is a dark horse. They don’t have retail busness but they have kept price low which is a good thing. Every other company keeps price high no matter what business. Look at icicidirect it has been a disaster.

    I will apply today. At least the price is reasonable, hopefully Ill not lose money and if the listing is good, that will be great.

  4. EPS growth in the last two years has been at 3%. Very low, given an annualized 30% EPS growth in the two years prior to that. with limited EPS growth, price is at a huge risk of PE contraction. Avoiid. Wait and watch to buy in the secondary market around 500.

  5. I just dont understand why people go for IPO like this when there are so many companies already listed. Just do some research and buy anything. No need to remain at the mercy of allotment and all!

    • 1. Whenever there is an IPO, it gains attention of investors.
      2. People tend to forget and track already listed peer companies.
      3. There are investors who are inclined to invest only in IPO.

  6. Whatever the price band, it is good to see an IPO after a dull month. Indostar has GMP of nearly 50 and all lending businesses are doing good this year so hope to make money in this one.

  7. It is a good business but 650 will be too high IMO. It will be a PE ~25 and there are many other companies trading at better valuations.

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