IndoStar Capital Finance raises Rs 1,225 crore
IndoStar has assets under management of around Rs 10,200 crore and has nearly 70,000 customers.
by PTI
New Delhi: Non-banking financial player IndoStar Capital Finance on Wednesday said it has raised Rs 1,225 crore equity capital from Brookfield, an alternative asset manager.
The investment by Brookfield in the retail-focussed NBFC is a combination of primary investment in equity shares and compulsorily convertible preference shares (CCPS).
With this investment, Brookfield will become a co-promoter with 24.6 per cent stake, along with IndoStar Capital Mauritius having 45.2 per cent holding at present.
"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's executive vice-chairman and CEO, R Sridhar, said in a release.
Brookfield will also invest Rs 225 crore through secondary purchase of shares from IndoStar Capital Mauritius.
Post this infusion, IndoStar's capital adequacy ratio has improved to almost 40 per cent compared with 27 per cent before this equity infusion, the release said.
This is the first private equity deal by Brookfield in the financial services space in the country.
IndoStar has assets under management of around Rs 10,200 crore and has nearly 70,000 customers.