IndoStar Capital IPO

Business 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:
investor.relations@indostarcapital.com
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: indostar.ipo@linkintime.co.in
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)

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