IndoStar Capital shares rise 6% on selling housing unit for ₹1,705 crore

Indostar Capital Finance shares rose 6 per cent after it completed the sale of its wholly owned subsidiary for ₹1,705.95 crore

Shares of Indostar Capital Finance rose nearly 6 per cent on Friday after it completed the sale of its wholly owned subsidiary to a global private equity investor for ₹1,705.95 crore. 

 

The Non Banking Financial Company (NBFC) stock rose as much as 5.9 per cent during the day to ₹332.7 per share, the biggest intraday rise since May 23 this year. The stock pared gains to trade 2.6 per cent higher at ₹322 apiece, compared to a 0.66 per cent decline in Nifty 50 as of 10:45 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 5.8 times the average 30-day trading volume, according to Bloomberg. The counter has risen 18 per cent this year, compared to a 5.5 per cent advance in the benchmark Nifty 50. Indostar Capital has a total market capitalisation of ₹4,361.24 crore.  

IndoStar Capital completes sale of Niwas Housing Finance 

The NBFC on Thursday said it completed the sale of its wholly owned subsidiary, Niwas Housing Finance Private Limited (formerly IndoStar Home Finance), to WITKOPEEND B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership. The deal has fetched IndoStar a total consideration of Rs 1,705.95 crore, it said in an exchange filing. 

 

The company said it will use the net proceeds from the transaction to accelerate value creation in its core business verticals, Vehicle Finance and Small Business Loans. 

 

"The completion of the transaction represents a significant milestone in IndoStar’s journey," according to  Randhir Singh, managing director and executive vice chairman of IndoStar. "It further enhances our liquidity and capital position and enables us to accelerate our profitability and value creation journey in our focus verticals."

 

Daiwa Corporate Advisory India Private Limited and Ambit Private Limited acted as exclusive financial advisors to IndoStar Capital Finance Limited and Niwas Housing Finance, the statement said.  

IndoStar Capital Q4 results

The company's standalone net profit rose 2.6 per cent to ₹36.19 crore in Q4 March 2025, compared with ₹35.27 crore in Q4 March 2024. Revenue declined 4.7 per cent year-on-year (Y-o-Y) to ₹372.56 crore from ₹390.72 crore in the same period.

About IndoStar Capital 

IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India (RBI), classified as a middle-layered NBFC. 

 

With Brookfield & Everstone as co-promoters, IndoStar is a professionally managed and institutionally owned entity engaged in providing used and new commercial vehicle financing and small business loans in tier 3 and tier 4 towns.