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 LimitedÂ
One Indiabulls Center, 20th Floor
Tower 2A, Jupiter Mills Compound
Senapati Bapat Marg, Mumbai 400 013
Phone:Â +91 22 4315 7000
Fax:Â +91 22 4315 7010
Email: [email protected]
Website:Â 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:Â 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)Â | ||
| 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:Â INR586.1 per share (up 2.46% from IPO price)
Price band is 640 – 650
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.
Price band not 650. It will be 575-580
Price band – 570 – 572 . Its good. Nice nbfc. Some listing gain may be possible. Subscribe this ipo.
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.
GMP is only 35 Rs
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.
what is the first day subscription status
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.
Good first day subscription> QIB’s will buy on the last day, it will be a hit.
GMP is now just 15-20 stay away from this
Wrong info, GMP is 25 in Ahmedabad. Just wait and watch it will another Mishra Dhatu.
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.
WAIT FOR GOOD companies trading at better valuations.
Wait for fewdays
GMP is increasing now, it will offer good listing gains
I am allotted !!!
I also got allotment in 2 out of 3 applications, now waiting for listing
Llisting will be 620+ for sure
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.
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
wait for monday, wil see…..
Good listing but bad day for markets…