02/05/2018
IPO REVIEW
INDO STAR CAPITAL FINANCE LTD
Issue Open: May 9, 2018 - May 11, 2018
Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs 570 - Rs 572 Per Equity Share
»» Market Lot: 26 Shares
»» Minimum Order Quantity: 26 Shares
»» Listing At: BSE, NSE
»» Issue Size: 700 cr
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👉🏼 IndoStar Capital Finance Limited is a leading non-banking finance company registered with the Reserve Bank of India.
👉🏼 Strong financials from 2013 to 2017
👉🏼 Continue increase in PAT and Revenue from 2013 to 2017.
👉🏼 Low NPA and Gross NPA levels
👉🏼EPS for FY16-17 is Rs.26.31
👉🏼Recently expanded business to vehicle finance and housing finance
👉🏼 NBFC is highly competitive market with well established Companies like Capital First AB capital, L&T finance, Chola, sundaram etc,
👉🏼if they have to survive, company have to grow and pe*****te in this business for future expansion.
👉🏼 If they can't expand, than risk if failure is more
👉🏼 At upper price band of 572 and EPS of 26.31, PE is 21.74
Peers PE trading at
CAPITAL FIRST :-22.57
Repco home :- 20.16
Sundaram :- 36
Industry average PE :- 26.51
So compared to all peers, indo star is reasonably priced.
👉🏼Company expects to benefit from strong capital sponsorship and professional expertise of their Promoter (INDOSTAR CAPITAL), which is part of the Everstone Group, an India and Southeast Asia focused investor which has approximately US$4.0 billion of Assets Under Management.
👉🏼 78% Business form corporate lending, 21% from SME lending.
