There was a new stock listing today – Indostar Capital Finance.
As against the IPO price of Rs.572, despite a lackluster market, the stock had a listing at Rs.600 on the BSE, a premium of 5%. It even went on to cross Rs.606 but is now ruling at Rs.592 levels.
The IPO was subscribed 6.8 time where the lion’s share was taken by the QIBs at 16.08 times, HNIs at 6.91 and retail investors at 1.48 times.
Indostar Capital is a 7 year old Mumbai based NBFC, promoted by 4 PE funds (Everstone Capital, Beacon India, ACPI Investment Managers and CIDB Capital). It provides structured term finance to corporates and loans to SMEs. It recently diversified into affordable home loans and used vehicle financing.
In our New Issue Analysis, we had said, “Professional management, established presence in under-penetrated mid-market corporate loans, planned diversification in new verticals, reasonable valuation make the issue attractive. Hence, we assign a ‘subscribe’ to the issue.”