IndoStar Capital Finance Ltd IPO: Reviews, Recommendations, Dates, Financials, GMP, Allotment Status, Live Subscription Status - IPO Reviews

Wednesday, May 2, 2018

IndoStar Capital Finance Ltd IPO: Reviews, Recommendations, Dates, Financials, GMP, Allotment Status, Live Subscription Status

IndoStar is a non-banking finance company "NBFC" registered with the Reserve Bank of India as a systemically important non-deposit taking company. The company is primarily engaged in providing structured term financing solutions to corporates and loans to small and medium enterprise "SME" borrowers in India. IndoStar expanded its portfolio to offer vehicle finance and housing finance products through the wholly-owned subsidiary IndoStar Home Finance Private Limited.

The company operate four principal lines of business, namely corporate lending, SME lending, vehicle financing and housing financing. 

IndoStar Capital Finance Ltd IPO: Reviews, Recommendations, Dates, Financials, GMP, Allotment Status, Live Subscription Status

Name of the Company:  IndoStar Capital Finance Limited


Promoters: Indostar Capital


Based in: Mumbai, Maharashtra, India

Year of Establishment: 2009

Area of business:  Non-banking finance company (NBFC)


IndoStar Capital Finance Limited IPO: Important Dates: 



SymbolINDOSTAR
Issue Period09-May-2018 to 11-May-2018
Issue SizeInitial Public offer of Fresh Issue upto Rs. 7000 million and an Offer for Sale upto 20,000,000 Equity Shares
Issue Type100% Book Building
Price RangeRs 570 to Rs 572
Face ValueRs 10
Tick SizeRe 1
Bid Lot Size26 Equity Shares and in multiples thereof
Minimum Bid Quantity26 Equity Shares
Maximum Subscription Amount for Retail InvestorRs. 2,00,000
IPO Market Timings10.00 a.m. to 5.00 p.m.

Finalisation of the basis of allotment: May 16, 2018

Initiation of refunds to your bank account: May 17, 2018
Credit of shares to your demat: May 18, 2018
Listing date: May 21, 2018

Financials:

  • The company total revenues have grown to Rs 7,199.17 million for fiscal 2017 from Rs 2,415.77 million for fiscal 2013 at a CAGR of 31.4% and profit after tax has grown to Rs 2,107.95 million for fiscal 2017 from Rs 900.94 million for fiscal 2013 at a CAGR of 23.7%. 
  • Valuation: Rs 5,213 crore at the upper end of the price band
  • Promoter shareholding post the IPO: Post-listing the promoter shareholding will fall to 58.95 percent from 91.5 percent 

Non-performing Assets of IndoStar Capital Finance:

YearGross NPA (in %)Net NPA (in%)
March 20150.611.9
March 20160.211.1
March 20171.410.3
December 20171.79.1


IndoStar Capital Finance Limited IPO: Earnings Per Share (EPS)



Financial PeriodBasic EPS (Rs)
Financial Year ended March 31, 201728.45
Financial Year ended March 31, 201626.66
Financial Year ended March 31, 201521.72
Nine-month period ended December 31, 201721.58

IndoStar Capital Finance Limited IPO: Return on Net Worth (RoNW)



Financial PeriodRoNW (%)
Financial Year ended March 31, 201711.00%
Financial Year ended March 31, 201612.39%
Financial Year ended March 31, 201511.60%
Nine-month period ended December 31, 20178.16%

IndoStar Capital Finance Limited IPO: Comparision with peers



Name of CompanyFace Value (Rs)EPSNet Asset Value (Rs per share)Price to BookP/ERoNW %
Indostar Capital Finance Limited1028.69242.82
1.9
20.411.08
L&T Finance Holdings Ltd105.2151.873.332.8611.44
Aditya Birla Capital Ltd106.3553.522.9424.768.04
Shriram Transport Finance Co. Ltd1055.78433.473.1727.6211.17
Repco Home Finance Ltd1030183.753.320.2116.32


IndoStar Capital Finance Limited IPO: Price to Earnings Ratio

  • Based on Basic EPS for the financial year ended March 31, 2017 – standalone basis: 
  • Based on the lower end of the price band: 20.04 
  • Based on the upper end of the price band: 20.11


IndoStar Capital Finance Limited IPO: Final Verdict


  • Based on the issue price and financials, we recommend subscribing for the IPO

Recommendations by Industry Experts:



Analyst/BrokerageLong termShort termSubscribe/Avoid
SP TulsianSubscribeSubscribe
Angel BrokingSubscribeSubscribe
Kotak Securities
ICICI SecuritiesAvoid
Choice BrokingAvoid
Aditya Birla MoneySubscribeSubscribe
Dilip DavdaSubscribeSubscribe
Economic TimesSubscribeSubscribe
Business StandardSubscribeSubscribe
IIFL wealth managementSubscribeSubscribe
HEM SecuritiesSubscribeSubscribe

SP Tulsian Comment and Review on IndoStar Capital Finance IPO:

Established presence in under-penetrated mid-market corporate loans, professional management with time-to-time well-planned diversification into new verticals, reasonable valuation makes the issue a very attractive. SP Tulsian has given subscribe rating keeping in long-term view.


IndoStar Capital Finance Limited IPO: Live Subscription Status


Last updated on 4:00 PM, 11th May, 2018
Category
No.of Shares Offered/reserved at
No.of shares bid for
No.of Times Subscribed
Lower BandUpper BandLower BandUpper Band
Qualified Institutional Buyers(QIBs)*64,35,08664,47,5521026,21,19416.0516.08
Non Institutional Investors48,42,10648,35,665242,17,7266.056.90
Retail Individual Investors(RIIs)112,98,246112,83,217123,54,6801.151.16
Total225,75,438225,66,4341391,93,6006.656.65
*Excluding Anchor
Total No.of Application Approx : ~ 420325
Retail Subscription on the basis of Apps : 1.09 x

IndoStar Capital Finance Limited IPO: Grey Market Premium (GMP)

  • IndoStar Capital Finance IPO GMP on May 9, 2018: Rs 20
  • IndoStar Capital Finance IPO GMP on May 10, 2018: Rs 25
  • IndoStar Capital Finance IPO GMP on May 11, 2018: Rs 55
  • IndoStar Capital Finance IPO GMP on May 12, 2018: Rs 65
  • IndoStar Capital Finance IPO GMP on May 13, 2018: Rs 65
  • IndoStar Capital Finance IPO GMP on May 14, 2018: Rs 50
  • IndoStar Capital Finance IPO GMP on May 15, 2018: Rs 80
  • IndoStar Capital Finance IPO GMP on May 16, 2018: Rs 80
  • IndoStar Capital Finance IPO GMP on May 17, 2018: Rs 50
  • IndoStar Capital Finance IPO GMP on May 18, 2018: Rs 50
  • IndoStar Capital Finance IPO GMP on May 19, 2018: Rs 40
  • IndoStar Capital Finance IPO GMP on May 20, 2018: Rs 30
Indostar capital finance share is expected to list at around Rs 630 to Rs 640 on Monday, 21st May.



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