Receives bids for 15.11 crore shares till 17:15 IST
The initial public offer (IPO) of Indostar Capital Finance received bids for 15.11 crore shares today, 11 May 2018, as against 2.25 crore shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:15 IST. The issue was subscribed 6.70 times. The issue opened for subscription on 9 May 2018 and closes today, 11 May 2018. The price band for the issue was fixed at Rs 570 to Rs 572 per share.
Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 8 May 2018, finalised allocation of 96.71 lakh equity shares to anchor investors at Rs 572 per share.
Indostar Capital Finance is a Mumbai-based non-banking finance company providing structured term financing solutions to companies and loans to small and medium enterprise (SME) borrowers. The portfolio was recently expanded to offer vehicle finance and housing finance products.
The IPO consisted of a fresh issue of equity shares aggregating up to Rs 700 crore and offer for sale (OFS) of two crore equity shares. The OFS comprised an offer aggregating 1.85 crore shares by promoter Indostar Capital and 0.15 crore share by other selling shareholders.
The net proceeds from the fresh issue will be utilised at augmenting the capital base to meet future capital requirements. Further, there will be the benefits of listing of the equity shares on the stock exchanges, enhancement of the brand name and creation of a public market for equity shares in India.
On a consolidated basis, Indostar Capital Finance reported net profit of Rs 164.08 crore on total income of Rs 585.95 crore in the nine-month ended December 2017.
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