The equity infusion is being followed by an open offer.
The equity infusion is being followed by an open offer.

IndoStar completes equity raise of Rs 1,225 crore from Brookfield

ANI | Updated: Jun 18, 2020 15:16 IST

Mumbai (Maharashtra) [India], June 18 (ANI): Retail non-banking financial company (NBFC) IndoStar Capital Finance has closed Rs 1,225 crore equity capital injection by Brookfield Business Partners LP together with its institutional partners.
The equity infusion is being followed by an open offer which is underway. Brookfield will be a co-promoter along with Everstone. "With this infusion, IndoStar has one of the highest capital adequacy ratio among all listed NBFCs," it said in a statement.

"Strong liquidity position and low debt:equity of 1.7x positions IndoStar well to further accelerate its retailisation strategy in a challenging market environment and equips it with the ability to use capital for both organic and inorganic growth."
The company currently has liquid assets of around 27 per cent of its borrowings, sufficient to cover its repayment obligations till March 2021. The company has raised Rs 452 crore since March 22.
"With AA-minus credit rating and a strong pipeline of raising further liabilities, IndoStar is well-positioned to embark on its next phase of growth," it said.
For the financial year 2019-20, the company posted net revenue from operations of Rs 738 crore, up 12 per cent year-on-year. It posted a pre-provisioning operating profit of Rs 428 crore, up 4 per cent.
In addition, IndoStar has taken additional COVID-19 related credit provisioning of Rs 280 crore to ring-fence the business from potential stress arising from the current business environment. (ANI)