IndoStar Capital Finance Completes ₹1,705.95 Cr Subsidiary Sale to EQT; Stock Rises 2.5% in Early Trade

Mumbai, July 18, 2025 – IndoStar Capital Finance Ltd (NSE: INDOSTAR) surged over 2.5% on Friday after the company announced the successful completion of the sale of its wholly owned subsidiary, Niwas Housing Finance Private Limited, to WITKOPEEND B.V., an affiliate of global private equity investor EQT.

The ₹1,705.95 crore deal enhances IndoStar’s capital base and allows sharper focus on core lending segments. Proceeds will support expansion in vehicle and small business loans, especially in underserved Tier 3 and 4 markets, aligning with the company’s rural lending strategy.

Deal Details & Strategic Intent

The transaction, valued at ₹1,705.95 crore, is aimed at strengthening IndoStar’s capital base and unlocking value in its core businesses. The company intends to deploy the proceeds towards expanding its Vehicle Finance and Small Business Loans verticals, especially in Tier 3 and Tier 4 cities.

“The completion of the transaction represents a significant milestone in IndoStar’s journey. It further enhances our liquidity and capital position,” said Randhir Singh, Managing Director and Executive Vice Chairman.

Devdutt Marathe, Brookfield nominee to the Board, added, “We look forward to continuing to support IndoStar’s management team to deliver value creation for all stakeholders.”

Stock Market Performance

As of 12:22 IST on July 18, IndoStar Capital was trading at ₹319.65, up 1.82% from the previous close. The stock moved between ₹316.05 and ₹332.75, with a VWAP of ₹324.34 and turnover at ₹22.57 crore.

Despite broader market volatility, investor sentiment remained upbeat, driving the stock up by ₹7.95. However, sell quantity (1.13 lakh) outpaced buy quantity (72,904), hinting at cautious profit booking.

Valuation & Market Metrics

IndoStar’s stock remains above its key support levels and continues to reflect high investor interest in the NBFC segment, particularly amid growing optimism around rural and semi-urban credit demand.

Advisors to the Deal

• Daiwa Corporate Advisory India and Ambit Private Limited: Financial Advisors
• Cyril Amarchand Mangaldas: Legal Counsel
• Ernst & Young LLP: Vendor financial and tax due diligence
• Samvad Partners: Additional legal advisory support

Outlook

The subsidiary sale has strengthened IndoStar’s capital position, enabling targeted lending expansion. Markets view the move as balance sheet-positive. Continued focus on rural credit and improved liquidity may support sustained traction in core segments and help narrow valuation gaps over time.

About IndoStar Capital Finance

Listed since May 2018, IndoStar Capital Finance Limited is a middle-layered Non-Banking Financial Company (NBFC) registered with the RBI. Backed by co-promoters Brookfield and Everstone, the company specialises in used and new commercial vehicle financing and small business loans, particularly in India’s underpenetrated regions.

REF: https://nsearchives.nseindia.com/corporate/INDOSTAR_17072025230646_PressRel.pdf

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