Indostar Capital launches Rs 1,850-crore public float

Mumbai: Non-banking finance company Indostar Capital Finance on Wednesday announced a Rs 1,850-crore initial public offer, under which it seeks to raise Rs 700 crore through fresh share issuance and the balance through an offer-for-sale involving up to 2 crore shares.

The Everstone-controlled company has fixed the price band in the range of Rs 570-572 per equity share for the issue, which will open on May 9 and close on 11. Post-issue the existing shareholders will sell up to 30 percent of their holdings.

"The proceeds of the fresh issue will be used to augment capital base to meet future capital requirements," executive vice-chairman and chief executive officer R Sridhar told reporters.

He said the promoters and the existing shareholders will dilute to 30 percent of their ownership through the public issue.

The company is 42.3 percent owned by the private equity fund Everstone Capital, while ACP Libra owns 16.35 percent and Beacon India PE owns 10.8 percent.

The company has presence in corporates, SME, vehicle and housing finance segments and has been growing at 25-30 percent on an average for the past few years. Sridhar expects growth to be on similar lines going ahead.

The issue is being managed by JM Financial, Kotak Mahindra Capital, Morgan Stanley, Motilal Oswal and Nomura.