- IndoStar has nearly 70,000 customers with assets under management around ₹10,200 crore
- After Investment Brookfield will become co-promoter with 24.6% stake
IndoStar Capital Finance Limited (IndoStar), one of India’s leading retail non-banking financial companies raised INR 1,225 crore equity capital injection by Brookfield Business Partners L.P., together with its institutional partners. With this infusion, IndoStar’s capital adequacy ratio improves to almost 40%, one of the highest amongst all listed NBFCs.
Strong liquidity position and low leverage of around 1.5x, IndoStar is well positioned to further accelerate its retail lending strategy in a challenging market environment and equips it with the ability to use capital for both organic and inorganic growth.
As part of the investment, Brookfield will become a co-promoter in IndoStar and has the ability to nominate two board members.
In a press release, R Sridhar, Executive Vice-Chairman & CEO, Indostar, said,
“This is truly a transformational investment for Indostar. We are excited to partner with Brookfield and Everstone Group to accelerate our retail lending strategy across Vehicle Finance, SME Finance and Affordable Housing Finance. This investment is a strong endorsement of IndoStar’s business model, management capability and quality of its franchise. This investment not only provides equity funding but also access to new debt financing via Brookfield’s relationships with financial institutions.”
Indostar Capital, Mauritius continues to be the promoter with 45.2% holding and an active shareholder in IndoStar. IndoStar has assets under management of around INR 10,200 crores and offers a wide range of loans to nearly 70,000 customers.