IndoStar IPO subscribed seven times on heavy QIB interest, retail lags

HNI and retail portion subscribed 7 times and 1.34 times respectively

IndoStar Capital Finance’s Rs 18.44-billion Initial Public Offering (IPO) garnered nearly seven times subscription. The Qualified Institutional Buyer (QIB) portion saw the highest demand at 16 times the shares on offer. The High Net-worth Individual (HNI) and retail portion of the issue were subscribed just seven times and 1.34 times respectively.

Through the IPO, IndoStar is looking to raise Rs 7 billion by issuing fresh equity shares to shore up its capital base. The offering will also comprise of an offer for sale worth Rs 11.44 billion.

The price band for the IPO was Rs 570 to Rs 572 per share.  At the top end, IndoStar is valued at Rs 52 billion.

IndoStar is primarily focused on corporate lending and vehicle financing. It also has a presence in the housing finance and SME lending space. Its credit exposure stood at Rs 51.7 billion as on December 31, 2017. JM Financial, Kotak Mahindra Capital, Morgan Stanley, Motilal Oswal and Nomura are the investment bankers handling the issue.