Indostar Capital soars after board OKs sale of housing finance arm to EQT for Rs 1,750 crore

IndoStar Home Finance Private Limited (IHFPL) was a subsidiary Indostar Capital Finance. WITKOPEEND B.V. is an affiliate of BPEA EQT Mid-Market Growth Partnership (EQT), a global private equity investor.

The transaction is subject to customary conditions precedent, including receipt of RBI approval, consents from lenders and shareholders' approval.

Further, EQT plans to invest INR 500 crore into IHFPL upon or shortly after closing of this transaction, and the board of IHFPL has granted an in-principle approval for such infusion.

The transaction will provide IndoStar with capital for accelerated growth and value creation in its core verticals of vehicle finance and small business loans.

Bobby Parikh, chairman of IndoStar, said: 'This transaction represents an important strategic move for IndoStar as we focus on driving accelerated growth and value creation in our core verticals including vehicle finance and small business loans. We are confident that under EQT's stewardship, IndoStar Home Finance will continue to thrive and deliver value to its stakeholders.'

Indostar Capital Finance is a non-banking finance company (NBFC) registered with the Reserve Bank of India as a systemically important non-deposit taking company. With Brookfield & Everstone as co-promoters, IndoStar is a professionally managed and institutionally owned entity engaged in providing used and new commercial vehicle financing.

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