Indostar Capital Finance gains over 8% ahead of ₹300-crore NCD issue launch on September 6; check details

The company is set to raise up to ₹300 crore through secured and redeemable NCDs of face value of ₹1,000 each, aggregating up to ₹150 crore with a green shoe option of an additional ₹150 crore. The issue is scheduled to close on September 19.

On Thursday, Indostar Capital Finance shares climbed as much as 8.6% to hit an intra-day high of ₹282 on the National Stock Exchange of India (NSE). However, the stock pared some of its early gains to trade 6.86% higher at ₹277.25 apiece on the NSE at 2:00 pm.

The stock has climbed over 24% in the past one month and is up nearly 62% year-to-date.

Earlier this week, Indostar Capital announced that it would issue five series of NCDs carrying fixed coupons and having tenures of 24 months, 36 months, and 60 months, with annual, quarterly, and cumulative interest payment options.

The coupon rate for NCDs ranges from 10.3% per annum to 10.7% per annum. The minimum bid size for each application for NCDs would be ₹10,000 across all series collectively and in multiples of ₹1,000 thereafter.

The company said that at least 90% of the net proceeds raised through this Issue will be used for onward lending, and a maximum of 10% is proposed to be utilised for general corporate purposes.

Nuvama Wealth Management Ltd is the lead manager of the Issue. The NCDs will be listed on BSE to provide liquidity to the investors.

IndoStar Capital Finance is a non-banking finance company that offers a comprehensive range of financial products for commercial vehicles, construction equipment, farm equipment, cars/MUVs, insurance, and micro-laps (small-ticket business loans). The company mainly focuses on small retail customers in Tier 2, Tier 3, and Tier 4 towns.