Indo Star Capital Finance, which is engaged in providing structured term financing solutions to corporates, had set a price band of Rs 570 to Rs 572 for its initial public offering (IPO). The IPO comprised a fresh issue of `700 crore and offer for sale of two crore shares, which at the upper price of the band will translate into an offer size of Rs 1,844 crore.
The issue was subscribed by 5.05 times. Qualified institutional buyers (QIBs) excluding anchor investors subscribed 15.34 times of the portion allotted to them, High Net Worth Individuals (HNIs) subscribed 7.85 times, and Retail investors bid for 1.41 times of the portion allotted to them.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements.
The company will not receive any proceeds from the offer for sale.
The company has four principal lines of business, corporate lending, SME lending, vehicle financing and housing financing. According to its draft red herring prospectus between FY13 and FY17, the company’s total credit exposure and total revenue grew at a CAGR of 30.0% and 31.4%, respectively.
The corporate lending business accounted for 76.8% the nine-month period ended December 31, 2017, respectively. As of December 31, 2017, their corporate lending credit exposure amounted to Rs 3,969.397 crore.
Indo Star’s total revenues have grown to `719 crore for fiscal 2017 from `241 crore for fiscal 2013 at a CAGR of 31.4%, and profit after tax has risen to `210 crore for fiscal 2017 from `90 crore for fiscal 2013 at a CAGR of 23.7%.