IndoStar Capital Finance promoters to sell 14.2% stake via OFS

Indostar Capital and Everstone Capital Partners Tuesday said its promoters are selling 14.21%  stake in the company through an offer for sale (OFS), which opens Wednesday (May 3, 2023).

“The company propose to sell up to 1,93,40,000 equity shares representing 14.21 percent of the total paid-up equity shares with a face value of Rs. 10.00”, IndoStar Capital Finance said in an exchange filing.

The OFS will open today (May 3, 2023) for non-retail investors and on Thursday (May 4, 2023) for retail investors and for non-retail investors through a separate, designated window provided by BSE and NSE for the purpose, the company said.

The FMCG is mulling to sell up 1.82 crore units (13.38% of total paidup equity share capital), while Everstone Capital is planning to give up 11,35,000 shares which is 0.83% of total paidup equity share capital. 

The floor price of the offer will be be ₹ 95 per equity share, the company said.

Ten percent of the offer size will be reserved for allocation to retail investors subject to receipt of valid bids, Indostar Capital added.

The unsubscribed portion of the offer shares reserved for retail investors shall be available for allocation to the investors in the non-retail category who have chosen to carry forward their un-allotted bids to T + 1 Day. 

A minimum of 25% of the offer shares will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price and as per allocation methodology. In the event of any under subscription by mutual funds and insurance companies, the unsubscribed portion will be available to other bidders.

The allocation will be at or above the floor price on a price priority basis at multiple clearing prices basis.

Motilal Oswal Financial Services will be the 'selling broker' and BSE will be the designated stock exchange, the company said in the regulatory filing.