The company founded in 2010 who provides lending services to small and medium sized corporates and companies. They are registered with SEBI as a systemically important non-deposit taking company.
IndoStar IPO GMP
IndoStar IPO Subscription
The object of the issue is to meet the future capital requirements. The company’s 91.55% stake is with company promoters while 8.45% stake is with public and others. Promoters will reduce their stake to 58.95%. The other and public stake will increase to 41.05% after ipo. The ipo price is been 570-572 per share which looks fine as per the company financial.
The company has well established lending business with SMEs and they are achieving high asset quality via robust credit assessment and risk management framework. They already doing well in their finance business and its proven with the track records.
The risk is as their NPAs which might increase but we are not sure about it. The company has given loans to SMEs which might be risky but it might not. They have other risk of Vehicle finance and housing finance business which need to prove in coming years.
IPOWatch – IPO Review:
IndoStar Capital Finance IPO has good to go with long term while in short term the gain might narrow.
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