IndoStar Capital Finance announces completion of transaction to sell Niwas Housing Finance to EQT

IndoStar Capital Finance Limited (IndoStar) today announced that it has completed the transaction to sell its wholly owned subsidiary Niwas Housing Finance Private Limited (Niwas, formerly IndoStar Home Finance Private Limited) to WITKOPEEND B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership (EQT), a global private equity investor.

IndoStar has received aggregate consideration of INR 1,705.95 crores under the terms of the agreement. The net proceeds will be used by IndoStar to accelerate value creation in its core verticals of Vehicle Finance and Small Business Loans.

Commenting on the completion of the transaction, Randhir Singh, Managing Director and Executive Vice Chairman of IndoStar, said, "The completion of the transaction represents a significant milestone in IndoStar's journey. It further enhances our liquidity and capital position and enables us to accelerate our profitability and value creation journey in our focus verticals."

Devdutt Marathe, Non-Executive Director of IndoStar and Brookfield nominee to the Board, added, "We thank the Niwas team for their contributions, and wish them continued success in the journey ahead. We look forward to continuing to support IndoStar's management team to deliver value creation for all stakeholders."

Daiwa Corporate Advisory India Private Limited and Ambit Private Limited acted as exclusive financial advisors to IndoStar Capital Finance Limited and Niwas Housing Finance Private Limited in relation to the transaction. Cyril Amarchand Mangaldas was engaged as the legal counsel to IndoStar Capital Finance Limited and Niwas Housing Finance Private Limited in relation to the transaction. Ernst & Young LLP was engaged by Niwas Housing Finance Private Limited for the vendor financial and tax due diligence exercise in relation to the Transaction. Samvad Partners was also engaged by Niwas Housing Finance Private Limited as part of the transaction.

Shares of IndoStar Capital Finance Limited was last trading in BSE at Rs. 314.00 as compared to the previous close of Rs. 316.80. The total number of shares traded during the day was 10344 in over 488 trades.

The stock hit an intraday high of Rs. 319.45 and intraday low of 312.00. The net turnover during the day was Rs. 3263975.00.

Source : Equity Bulls

Keywords

IndoStarCapitalFinance INE896L01010 NBFC Sale NiwasHousingFinance EQT