IndoStar Capital Finance stock zooms 13% to 52-week high on sale of subsidiary for Rs 1,750 crore

Over the past year, IndoStar shares have jumped 80 percent.

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26 Aug, 2025 12:21

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IndoStar Capital Finance shares surged over 13 percent in early trade on September 20, after the NBFC sold its subsidiary IndoStar Home Finance for a total consideration of Rs 1,750 crore.

The non-banking financial company sold its subsidiary IndoStar Home Finance Private Limited (IHFPL) to Witkopeend BV, an Amsterdam-based affiliate of global private equity investor BPEA EQT Mid-Market Growth Partnership, for Rs 1,750 crore on a fully diluted basis.

At 9.37 am, IndoStar Capital Finance shares, which are part of ace investor Madhusudan Kela's portfolio, were quoting Rs 315.6 on the NSE, higher by 4.6 percent, after recording a fresh 52-week in trade.

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The deal, which is pending customary conditions like regulatory approval from the Reserve Bank of India and consent from lenders and shareholders, will see EQT invest Rs 500 crore into IHFPL shortly after the transaction closes. This capital influx is expected to facilitate IndoStar’s accelerated growth in its primary sectors of vehicle finance and small business loans.

Bobby Parikh, chairman of IndoStar, highlighted the strategic importance of this move, emphasising a renewed focus on core business areas. “We are confident that under EQT's stewardship, IndoStar Home Finance will continue to thrive,” he stated.

IndoStar has strategically prioritized the expansion of its loan book in the used CV and affordable housing finance segments. It anticipates that a reinforced management team, enhanced processes, and a favorable economic climate will serve as catalysts for growth in these segments, said Motilal Oswal, in note on August 1. The brokerage has a buy rating on the stock, with a target price of Rs 290.

Over the past year, IndoStar shares have jumped 80 percent, as against a 25 percent rise in the headline Nifty 50 index during the same time period.

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