Indostar Capital garners Rs 553 cr from anchor investors, IPO opens today
09/05/2018 10:58
Non-banking finance company Indostar Capital Finance said it has raised a little over Rs 553 crore from anchor investors, ahead of its initial public offering, which opens today, reported PTI.

The company's IPO committee has finalised allocation of 96,71,329 equity shares to as many as 24 investors at Rs 572 apiece, also the upper price band for the offer, Indostar Capital said in a statement.

At this price, the total amount works out to be Rs 553.19 crore, it added.

Among the anchor investors are SBI Mutual Fund (MF) HDFC MF, Aditya Birla Sunlife MF, Fidelity, EastBridge, ICICI Lombard General Insurance, ICICI Prudential Life Insurance and Bajaj Alliance Life.

Indostar Capital's Rs 1,844-crore IPO will be open for public subscription during May 9-11, with a price band of Rs 570-572 per share.

The IPO comprises fresh issuance of shares worth Rs 700 crore, besides, an offer-for-sale involving up to 2 crore shares.

Proceeds of the fresh issue will be used to augment capital base to meet future capital requirements.

The promoters and the existing shareholders will dilute up to 30 per cent of their ownership through the public issue.

The company is 42.3 per cent owned by the private equity fund Everstone Capital, while ACP Libra owns 16.35 per cent and Beacon India PE owns 10.8 per cent.

The issue is being managed by JM Financial, Kotak Mahindra Capital, Morgan Stanley, Motilal Oswal and Nomura.