IndoStar Capital Finance, the Mumbai-based non-banking finance company is planning to hit the market with an Initial Public Offer (IPO). The company has filed draft papers with the Securities and Exchange Board of India (SEBI) for its nod for going public.
The IndoStar Capital Finance is planning to raise an estimated Rs 2,000 crore through the public offering. The IPO comprises of fresh shares worth Rs 700 crore. Besides this, the existing shareholder will offer up to Rs 2 crore scrips, reports said.
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According to the Draft Red Herring Prospectus (DRHP), the company plans to list the equity shares offered through the draft paper to be listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The corporate and SME-focused non-banking finance player proposes to utilize the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements, the firm said.
JM Financial, Morgan Stanley India Co., Kotak Mahindra Capital Co., Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt. Ltd will be the lead managers of the IPO.
IndoStar Capital Finance provides various financing services to large and mid-sized corporates in India. It offers secured corporate lending products, including secured structured term loans and real estate financing products, among others. Its current shareholders include Everstone Capital, Beacon India Fund, ACPI Investment Managers and CIDB Capital. The company has recently launched vehicle finance and affordable housing loan products.
