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Brookfield to pick up 40% stake in IndoStar Capital for Rs 1,450 crore

Brookfield will also become a co-promoter in IndoStar and nominate two board members. R Sridhar will continue to lead the company in his role as vice-chairman and CEO of IndoStar

Raghavendra Kamath  |  Mumbai 

Brookfield

Business Partners, together with its institutional partners, will invest Rs 1,450 crore in IndoStar Capital Finance to pick up 40 per cent stake in the company.

The overall investment will comprise a combination of primary investment in equity shares and compulsorily convertible preference shares of Rs 1,225 crore along with a secondary purchase of shares from IndoStar Capital Mauritius.

will also become a co-promoter in IndoStar and nominate two board members. R Sridhar will continue to lead the company in his role as vice-chairman and CEO of IndoStar.

The fresh investment by will support the continued growth of IndoStar’s retail business.

“We are delighted to partner with a reputable global investor such as Brookfield and welcome them to the IndoStar family. We see opportunities to continue delivering substantial value to IndoStar’s customers, employees and investors,” IndoStar Chairman Dhanpal Jhaveri said. He is also the vice-chairman of Everstone India.

Aditya Joshi, senior vice- president, Brookfield, said, “We believe in the long-term secular growth runway of the Indian retail financial services sector. IndoStar has an experienced management team and a strong position in attractive and growing retail lending segments. We look forward to partnering with Everstone and the IndoStar management team to further scale the business.”

IndoStar Capital Mauritius continues to be the promoter and an active shareholder in IndoStar which it built from the ground up since 2011. IndoStar has assets under management of Rs 10,600 crore.

First Published: Sat, February 01 2020. 02:25 IST
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