Indostar Capital Finance NCD opens for subscription on 06 September 2024. The company aims for a base issue size of ₹150 Crores.
About the company
Indostar Capital Finance Limited was incorporated in 2011 and is a non-banking finance company (NBFC) registered with the Reserve Bank of India as NBFC-ML. The company offers secured financing solutions to borrowers in various categories: Financing of used and new vehicles for transporters, affordable home finance solutions for borrowers, loans for SME borrowers and structured finance solutions for corporates.
- The company has two wholly-owned subsidiaries:
Indostar Home Finance Private Limited (IHFPL): IHFPL provides affordable home loans to salaried, professional, middle and lower-income groups residing in the outskirts of Tier-II and below cities; and - Indostar Asset Advisory Private Limited (IAAPL): IAAPL operates as an investment manager and is registered with SEBI.
The company had 4 main business lines:
- Commercial Vehicle Finance: This involves providing finance for the purchase of used or new commercial vehicles, passenger vehicles and two-wheelers.
- Housing Finance: This business is conducted through Indostar Home Finance Private Limited (IHFPL). The focus is on providing affordable housing finance.
- SME Loans: This involves providing secured/unsecured loans for business purposes to small and medium enterprises, including businessmen, traders, manufacturers, and professionals.
- Corporate loans: Corporate loans are primarily loans to real estate developers, primarily for financing the construction of residential and commercial buildings at project level and for early-stage investor participation.
Indostar Capital Finance has an extensive network of 515 branches in 23 states (as at March 31, 2024).
As of March 31, 2024, the company served over 2,33,098 customers with its diversified portfolios and loan products and employed 3,999 people (3,067 employees of the main company and 932 employees of the subsidiary IHFPL).
Objectives of the Issue
- For onward lending
- General Corporate Purposes
Indostar Capital Finance NCD Details
| Issue Open | September 6, 2024 – September 19, 2024 |
| Security Name | Indostar Capital Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 150.00 Crores |
| Issue Size (Oversubscription) | ₹ 150.00 Crores |
| Overall Issue Size | ₹ 350.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CARE AA-/Stable by CARE Ratings Limited. |
| Tenor | 24, 36, and 60 Months |
| Series | Series I to V |
| Payment Frequency | Quarterly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Ltd. |
Indostar Capital Finance NCD Options and Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
|---|---|---|---|---|---|
| Frequency of Interest Payment | Annual | Cumulative | Quarterly | Annual | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months |
| Coupon (% per Annum) | 10.5% | NA | 10.3% | 10.7% | 10.5% |
| Effective Yield (% per Annum) | 10.5% | 10.5% | 10.7% | 10.7% | 10.49% |
| Amount on Maturity (In Rs.) | ₹ 1,000 | ₹ 1,221.31 | ₹ 1,000 | ₹ 1,000 | ₹ 1,000 |
Indostar Capital Finance NCD Rating
The NCDs to be issued under the Issue have been rated “CARE AA-/Stable” (pronounced as CARE Double A Minus; Outlook: Stable) by CARE Ratings Limited for Rs. 50,000 Lakh.
Company Financials
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 11,120.7 | 9,122.19 | 9,661.47 |
| Revenue | 1,397.54 | 1,179.65 | 1,174.29 |
| Profit After Tax | 115.83 | 225.15 | -736.51 |
| Net Worth | 3,220.22 | 3,097.65 | 2,917.19 |
Indostar Capital Finance NCD Allocation Ratio
Company Promoters
- BCP V Multiple Holdings Pte Ltd
- Indostar Capital (Mauritius)
Indostar Capital Finance NCD
Indostar Capital Finance NCD Lead Manager
- Nuvama Wealth Management Limited
Indostar Capital Finance Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: indostar.ncd2024@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Company Contact Details
Indostar Capital Finance Limited
Off No -301, Wing A, CTS No 477,
Silver Utopia, Chakala Road, Opp Proctor
Opp Proctor and Gamble, Andheri(E), Mumbai�400 099
Phone: +91 22 4315 7000
Email: investor.relations@indostarcapital.com
Website: https://www.indostarcapital.com/
Indostar Capital Finance NCD Subscription Status
| Category ? | Subscription (times) |
|---|---|
| Retail | 0.95x |
| HNI | 0.93x |
| Non-Institutional | 4.12x |
| Institutional | 0.20x |
| Total | 1.82x |
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those seeking a diversified portfolio. investing in Indostar Capital Finance NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
