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IndoStar Capital Finance Limited IPO Review (Price, GMP)

IndoStar Capital Finance Limited IPO Review

IndoStar Capital Finance Limited (CFL) is actually a non-banking finance company or NBFC. ISCFL is registered as an NBFC with the Reserve Bank of India (RBI) and also as a systemically important non-deposit taking company. The company is based in Mumbai, Maharashtra. IndoStar is in the process of getting listed in the primary markets through their initial public offering that will be open for applying to start from May 9th. We will check the DRHP quickly and consider the issue date, issue price, grey market premium, etc to post our IndoStar Capital Finance Limited IPO Review for you

About IndoStar Capital Finance Limited IPO :

  • IPO Opens on โ€“ May 9, 2018.
  • IPO Closes on โ€“ May 11, 2018.
  • Face Value โ€“ Rs. 10 Per Equity Share.
  • Issue Price โ€“ Rs. โ€“ Rs. Per Equity Share.
  • Issue Type โ€“ Book Built Issue IPO.
  • Market Lot โ€“ Nil.
  • Minimum Order Quantity โ€“ Nil.
  • Issue Size โ€“ 20,000,000 Equity Shares of Rs 10 aggregating up to Rs [.] Cr and Fresh Issue of [.] Equity Shares of Rs 10 aggregating up to Rs 700.00 Cr.
  • Listing Exchange โ€“ BSE, NSE.
  • Draft Prospectus โ€“ Download.

Objectives of the issue:

  • The Fresh Issue towards augmenting its capital base to meet future capital requirements.
  • The selling shareholders will be entitled to the proceeds of the Offer for Sale of the company’s respective portions of the offered shares, respectively net of the company’s share of the offer related expenses.

About The Company โ€“

  • IndoStar Capital Finance Limited is
  • This company operates four principal lines of business, namely corporate lending, SME lending, vehicle financing, and housing financing.
  • IndoStar Capital Finance Limited is recently expanded its portfolio to offer vehicle finance and housing finance products.
  • This company 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 IndoStar Capital Finance Limited include fourteen public sector banks, thirteen private sector banks, twenty-one mutual funds (MF) and 4 insurance companies and also other financial institutions.
  • The distribution network of this company includes approximately 210 personnel in its in-house sales team, and approximately 648 third-party direct sales associates (DSAs) and other third-party intermediaries.
  • The strengths of IndoStar Capital Finance Limited is-
    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.
IndoStar Capital Finance Limited
IndoStar Capital Finance Limited

Promoters of the company :

  • The promoter of this company is Indostar Capital.

Company Financials:

IndoStar Capital Finance Limited IPO

IndoStar Capital Finance Limited IPO Review:

The company has shown strong and steady growth in the profits as per the draft red herring prospectus. As per the financial data, the average earnings per share for the last three years work out to be 26.7. The price to earnings ratio comes out to be near 25 times. Hence our IndoStar Capital Finance Limited IPO Review has a POSITIVE view on this issue and we feel that long-term traders can apply for this issue. The GMP for IndoStar is not yet available however keep an eye on our GMP page for the development. If you are a short-term trader and are looking for a listing gain, don’t forget to apply our last day IPO selection method.

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