IndoStar Capital Finance Ltd to raise over INR 450 crore by preferential allotment of warrants

IndoStar Capital Finance Limited (IndoStar) today announced that its Board has approved a fund raise of INR 456.6 crore via preferential allotment of warrants to Brookfield Asset Management through one of its private equity funds ("Brookfield") and Florintree Tecserv LLP ("Florintree"). Brookfield and Florintree will invest INR 256.6 crore and INR 200.0 crore respectively to subscribe to approximately 13.95m and 10.87m warrants at a price of INR 184 per share. The company will receive 25% of the warrant subscription amount following customary regulatory and shareholder approvals, with the remaining 75% being received within subsequent 18 months. Following the fund raise, Brookfield will retain its present shareholding in the Company.

The investment will enable the Company to accelerate its growth journey in its core markets - vehicle finance, affordable housing finance and SME finance. This investment further underscores the confidence of the promoter and investors in the company's strategy and growth journey.

Commenting on this capital raise, Karthikeyan Srinivasan, CEO, IndoStar said, "We are pleased to welcome Florintree as an investor in IndoStar and are grateful to our Promoters - Brookfield and Everstone and all our other shareholders for their continued support and confidence in the growth strategy of the company."

Shares of IndoStar Capital Finance Limited was last trading in BSE at Rs. 220.15 as compared to the previous close of Rs. 209.70. The total number of shares traded during the day was 40687 in over 136 trades.

The stock hit an intraday high of Rs. 220.15 and intraday low of 211.25. The net turnover during the day was Rs. 8923713.00.

Source : Equity Bulls

Keywords

IndoStarCapitalFinance INE896L01010 FundRaising PreferentialIssue Warrants