At 10:01 am; the stock was trading at Rs 596, a 4% higher against its issue price. It touched high of Rs 606 and a low of Rs 594 so far. A combined 5.85 million shares changed hands on the counter on the BSE and NSE.
The Rs 18.44-billion initial public offer had received good response with issue over-subscribed 6.8 times. The IPO was received bids for 153.61 million shares against the total issue size of 22.57 million shares.
The category reserved for qualified institutional buyers (QIBs) was subscribed 16.08 times, non institutional investors 6.91 times and retail investors 1.48 times.
The IPO consists of fresh issue of up to Rs 7-billion and an offer for sale of up to 20 million equity shares (including anchor portion of 9.67 million equity shares). The price band for public issue was at Rs 570-572 per share.
The fresh issue proceeds would be used to augment capital base to meet future capital requirements while money raised through offer for sale will go to selling shareholders.
Indostar Capital Finance, an NBFC which offers structured term financing solutions for corporates, and loans to small and medium enterprise (“SME”) borrowers in India. It has recently expanded its portfolio to offer vehicle finance and housing finance products.