Should I subscribe to Indostar capital finance IPO?

IPO is the heaven for the layman and amateur investors who want to enter the stock market. Generally, IPOs are giving good returns in the recent past. Here is the performance report for last 1 year IPOs. If you want to mint money from the IPO, keep an eye on the upcoming IPO in the May 2018.

In the first week of May, Indostar capital finance is coming up with its IPO. The company is incorporated in 2009 is a leading non-banking finance company(NBFC) and is registered with RBI as a systematically important non-deposit taking company. The company’s main business is corporate lending, vehicle financing, SME lending and housing finance. Out of these 4 main activities, vehicle finance and housing finance are newly started businesses.

The company has 10 branches across India with the corporate office in Mumbai.

10 Branches
Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Jaipur, Surat, Ahmedabad, Pune, Indore

The strength of the Company

  • Strong SME lending businesses
  • A high-quality loan portfolio with low rates of Gross NPAs and Net NPAs.
  • Proven track record of delivering results. Between fiscal 2013 and 2017, the company’s Total Credit Exposure and total revenue grew at a               CAGR of 30.0% and 31.4%, respectively.
  • Access to best industry practices and international corporate governance standards due to institutional Promoter.
  • The distribution network includes approximately 210 personnel in its in-house sales team, and approximately 648 third-party direct sales associates (DSAs) and other third-party intermediaries.

Company Financials:

indostar

Issue Detail:

Issue Type: Book Built Issue IPO
Issue Size: 3,07,69,231 Equity Shares
Face Value: Rs 10 per Equity Share
Issue Price: Rs.640 – Rs.650 per Equity Share
Market Lot: 23 shares

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 Category-wise Break up:

Anchor – 92,30,769 Shares = 600Crs
QIB – 61,53,846 Shares = 400Crs
NII – 46,15,385 Shares = 300Crs
RII – 1,07,69,231Shares = 700Crs (Lot size: 23 = 4,68,227 Forms)
Total Issue – 3,07,69,231 Equity Shares = 2,000Crs.

Important Dates

02nd May – Price Band to be Announced
08th May – Anchor List
09th May – Offer Opens
11th May – Offer Closes
16th May – Finalisation of Basis of Allotment
17th May – Unblocking of ASBA
18th May – Credit to Demat Accounts
21st May – Listing on NSE & BSE

Peer Group

L&T Finance Holdings
Piramal Enterprises
Aditya Birla Capital
Capital First
Shriram Transport Finance Co.
Sundaram Finance
Cholamandalam Investment and Finance Co.
Repco Home Finance

Investment banks

1. JM Financial Consultants Private Limited
2. Kotak Mahindra Capital Company Limited
3. Morgan Stanley India Company Pvt Ltd
4. Motilal Oswal Investments Advisors Pvt Ltd
5. Nomura Financial Advisory And Securities (India) Pvt Ltd

Company Contact Information

IndoStar Capital Finance Limited
One Indiabulls Center, 20th Floor,
Tower 2A, Jupiter Mills Compound
Senapati Bapat Marg, Mumbai 400 013
Phone: + 91 22 4315 7000
Fax: +91 22 4315 7010
Email: [email protected]
Website: http://www.indostarcapital.com/

Indostar Capital IPO review by top 10 stock brokers

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