Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
IPO News

| More

IndoStar Capital Finance Ltd - IPO Note - Angel Broking

Posted On: 2018-05-09 08:50:00

IndoStar Capital Finance (ICFL) is a Mumbai-headquartered non-deposit taking NBFC. It is the first of its kind to be promoted by global investors, Everstone Capital and Goldman Sachs. ICFL started its business by offering corporate loans and gradually expanded offering to SME, Vehicles, and Housing. It has growing loan book at healthy rate but with pristine asset quality (GNPA -1.4%, NNPA -1.2%). On the profit front, it reported CAGR of 23% in PAT for the four years ended FY17.

Expanding offerings to support Loan growth: ICFL had begun its journey with clear focus on corporate lending and FY15 onwards SME, which helped them to grow at healthy CAGR of 30% since inception. Post induction of R.Sridhar in beginning of FY17 (Previously associated with Shriram group) ICFL expanded its portfolio to offer vehicle finance and housing finance.

Experienced management, branch network expansion to support loan book: ICFL management team has extensive experience in the financial services and banking industries in India. We expect ICFL ESOP program (9.8% of diluted shares) help to develop ownership mindset in top to mid level management. To gain retail lending (Vehicle & Housing) business it has increased Branch network from 7 in FY17 to 43 as on Q3FY18 and added another ~57 in Q4FY18.

Strong asset quality; sufficient CAR to support growth: Robust credit assessment process and clever understanding of targeted market has helped to keep GNPA at 1.3% as on 3QFY18. As on 3QFY18, CAR stood at 31.6% and post IPO CAR would further increase. With strong internal capital generation ability, present high CAR and IPO proceeds would not require ICFL to dilute equity for high growth in near future.

Outlook & Valuation: At the upper end of the price band, ICFL is valued at 2.2x of Q3FY18 book value (Pre-IPO) and on post dilution basis at 1.9x of Book value. The strong sponsorship of Everstone and other shareholders, along with a wellcapitalised balance sheet and an experience and focused management provide an excellent base for the next level of growth. Based on the above positive factors we assign SUBSCRIBE rating to the issue.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

HDFC AMC IPO receives subscription of 83.04 times

HDFC Asset Management Co - IPO Note - Angel Broking

TCNS Clothing Company Limited - IPO Note - Angel Broking

Rajnish Wellness Ltd IPO to hit markets on June 25, 2018

Varroc Engineering Limited IPO to open for subscription on June 26, 2018

RITES Limited IPO receives overwhelming response from investors

Fine Organic Industries Limited IPO receives subscription of 8.99 times

Varroc Engineering Ltd - IPO Note - Angel Broking

RITES Ltd - IPO Note - Angel Broking

Fine Organic Industries Ltd - IPO Note - Angel Broking

Avana Logistek Ltd files DRHP with SEBI for IPO

IndoStar Capital Finance Limited Offer opens on May 9, 2018

IPO Note - SoftTech Engineers Ltd - Arihant Capital Markets Ltd

Hindustan Aeronautics Ltd to list on March 28, 2018

Expectations high on listing of Bandhan Bank shares tomorrow

Mishra Dhatu Nigam Limited IPO receives subscription of 1.21 times

Lemon Tree Hotels Limited - IPO Note - Angel Broking

Mishra Dhatu Nigam Ltd - IPO Note - Sushil Finance

ICICI Securities Ltd - IPO Note - Sushil Finance

Lemon Tree Hotels Ltd - IPO Note - Sushil Finance

Mishra Dhatu Nigam Ltd - IPO Note - Angel Broking

Mishra Dhatu Nigam Ltd - IPO Note - Avoid - Hem Securities

ICICI Securities Ltd - IPO Note - SSJ Finance & Securities

Mishra Dhatu Nigam Ltd - IPO Note - Subscribe - SSJ Finance & Securities


IPO Note: ICICI Securities Ltd - SUBSCRIBE - Kotak

IPO: Mishra Dhatu Nigam Ltd - IIFL

Sandhar Technologies Limited - IPO Note - Angel Broking

Hindustan Aeronautics LTD - IPO Note - HEM Securities

ICICI Securities IPO to open for subscription on Mar 22, 2018

IPO Note: Sandhar Technologies Ltd - SUBSCRIBE - Kotak

IPO Note: Hindustan Aeronautics Ltd - SUBSCRIBE - Kotak

Bandhan Bank Ltd - IPO Note - Subscribe - HEM Securities

HDFC Asset Management Company Ltd files DRHP for IPO

Bandhan Bank Ltd - IPO Note - Subscribe - SSJ Finance

Bandhan Bank Limited - IPO Note - Angel Broking

IPO of ICICI Securities Ltd to open on March 22, 2018

Bharat Dynamics Ltd - IPO Note - SUBSCRIBE - Kotak

Bharat Dynamics Ltd - SUBSCRIBE - IPO Report - HEM SECURITIES

Bandhan Bank Ltd - IPO NOTE - Arihant Capital Markets

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018