IndoStar's CEO infuses Rs 100 cr for 5% stake

First Indian non-bank financing company to be sponsored by global financial institutions, PE players

R Sridhar, who recently joined Everstone-backed IndoStar Capital Finance, has infused around Rs 100 crore into the company. 

The financial-services veteran has joined IndoStar as executive vice-chairman and chief executive officer, taking over from Vimal Bhandari, who had led the firm since 2011.

While Sridhar was not available for comment, sources close to the company and to him have confirmed that he had picked up around five per cent stake in the company by infusing around Rs 100 crore.

It was also learnt his investment had been backed by a few other investors. 

Sridhar, who is also senior advisor to Texas Pacific Group since February 2011, was with Shriram Transport Finance Corporation for more than 18 years in various positions, including president and managing director.

He was responsible for building the Shriram Group’s truck finance business. He is expected oversee IndoStar’s growth in its lending businesses. These include corporate lending; small and medium enterprises lending; a fully-owned housing finance subsidiary IndoStar Home Finance and other asset financing businesses.

At the end of March, the company had a net worth of Rs 1,542 crore.  

Sponsored by Everstone Capital, IndoStar Capital Finance Limited is the first Indian NBFC to enjoy the support of leading global financial institutions, including Goldman Sachs, ACPI Investment Managers and others. IndoStar commenced operations in 2011.