Indostar Capital Finance Limited IPO
Indostar Capital Finance Limited IPO
Indostar Capital Finance Limited
It is a leading non-banking finance company which is primarily engaged in providing bespoke Indian Rupee denominated structured term financing solutions to corporates and loans to small and medium enterprise borrowers in India. The company recently expanded Their portfolio to offer vehicle finance and housing finance products. Company expertise and focus on our customers, experienced management team and vigilant monitoring of our assets, our business has experienced growth since the commencement of our operations in 2011. Between fiscal 2013 and 2017, our Total Credit Exposure and total revenue grew at a CAGR of 30.0% and 31.4%, respectively. We operate four principal lines of business, namely corporate lending, SME lending, vehicle financing and housing financing.
(i) Corporate Lending
(a) Lending to mid-to-large sized corporate in manufacturing, services and infrastructure industries, by way of senior secured debt, structured financing, promoter financing and special situation funding.
(b) Lending to real estate developers, mainly for financing project-level construction of residential and commercial building projects
(ii) SME Lending.
SME lending business, which we commenced in 2015, primarily involves us extending secured loans for business purposes to small and medium-sized enterprises, including businessmen, traders, manufacturers and self-employed professionals. The property securing these loans are typically completed and largely self-occupied residential and commercial property. The company currently provide SME lending loans from our branches located in ten key locations across India, namely Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Jaipur, Surat, Ahmedabad, Pune, and Indore. Our SME Lending Credit Exposure amounted to 9,67.042 Cr.
(iii) Vehicle Finance.
Vehicle Finance business primarily involves providing financing for purchases of used or new commercial vehicles, passenger vehicles, and two-wheelers. The company commenced vehicle finance business in November 2017. Vehicle finance operations involve a relatively larger sourcing team as compared to our other business lines as it is largely based on our experience of working with customers with limited credit history and our ability to effectively assess risks associated with financing used vehicles.
(iv) Housing Finance.
(a) Affordable housing finance, which commenced operations in September 2017.
(b) retail housing finance, which is expected to commence operations by March 2018.
Objects of the Indostar Capital Finance Limited IPO:
Indostar Capital Finance Limited IPOare: Offer for Sale Offer for sale of up to 20,000,000 equity shares. Fresh Issue Equity Shares[*] of Rs 10 aggregating up to Rs 700.00 Cr
Indostar Capital Finance Limited IPO Details:
|Open Date:||May 09 2018|
|Close Date:||May 11 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||1844 Cr.|
|Lot Size:||26 Shares|
|Issue Price:||₹ 570-572 Per Equity Share|
|Listing Date:||May 21 2018|
Promoters And Management:
|Entity/Person||Number of equity shares||Percentage of equity share capital (%)|
|ACP LIBRA Limited||3,487,256||16.35|
|Beacon India Private Equity Fund||2,300,000||10.79|
|Everstar Holdings Pte. Ltd||1,855,090||8.7|
|Global Long Short Partners Mauritius I Limited||1,800,000||8.44|
|Private Opportunities (Mauritius) I Limited||1,200,000||5.63|
|CDIB Capital Investment II Limited||992,674||4.65|
|Beacon Light Group Limited||618,363||2.9|
Financials of Indostar Capital Finance Limited IPO as per DRHP:
|1. Balance Sheet Snippet[ Financials as of Sept 2017]|
|(i) Shareholders’ Fund[Equity] Value||2023.195 Cr|
|(ii) Asset||5390.455 Cr|
|(iii) Liability||3367.26 Cr|
|(iv) Debt/Equity[<1 ideal]||1.67|
|(v) Net Worth[Asset- Liability]||2023.195 Cr|
|(vi) RONW[PAT/Net Worth] or ROE||5%|
|(vii) Book Value or NAV[ Net Worth/No.of Shares]||257|
|(viii) P/B [<5 ideal]||2.225|
Comparison With Peers:
|Name of the Company||FV||EPS||NAV||P/E||P/B||RONW|
|Indostar Capital Finance Limited||10||24.29||242.82||23.54||1.90||11.08%|
|L&T Finance Holdings Ltd||10||5.14||51.87||33.11||3.33||11.44%|
|Piramal Enterprises Ltd||2||72.57||862.44||37.7||3.17||8.41%|
|Aditya Birla Capital Ltd.||10||6.35||53.52||26.94||3.2||8.04%|
|Capital First Ltd||10||23.97||236.48||28.88||3.12||10.37%|
|Shriram Transport Finance Co. Ltd.||10||55.78||499.46||24.7||2.76||11.37%|
|Sundaram Finance Ltd||10||61.52||433.47||30.47||4.32||14.19%|
|Cholamandalam Investment and Finance Company Ltd.||10||46.03||276.49||27.92||4.65||16.63%|