Motilal Oswal is bullish on Indostar Capital Finance recommended buy rating on the stock with a target price of Rs 175 in its research report dated May 30, 2023.

The OFS opens today for non-retail investors and tomorrow for retail investors. Promoter Indostar Capital and Everstone Capital Partners II LLC plan to sell 19.34 million shares, or a 14.21 percent stake, at a floor price of Rs 95 a share, which is at a 22.8 percent discount to the closing price on May 2

Steel major Tata Steel Ltd reported consolidated net profit of Rs 1,705 crore for the January-March period. This is a fall of 82% from Rs 9,756 crore a year ago.

Under the OFS, promoters Indostar Capital and Everstone Capital Partners will offload about 1.93 crore equity shares with a floor price fixed at Rs 95 per unit, a 20% discount from the last closed price of Rs 120. On May 4, the OFS will be available for retail investors, whilst non-retail investors who have placed their bids on 'T Day' may carry forward any un-allotted to T+1 day.

Non-bank lenders JM Financial and Indostar on Monday announced that they are in "preliminary discussions" to merge their respective mortgage verticals into a single entity.

"The companies are engaged in preliminary discussions to explore potential strategic options including potential combination and listing of the retail mortgage portfolio of JM Financial and the home finance business of Indostar Home Finance Private Limited including other mortgage-backed business of Indostar," JM Financial said in a regulatory filing to stock exchanges.

The firm has reported its highest-ever quarterly net loss, and the management has voiced doubts about its continuation as a going concern.

The portfolios include ₹1,100 crore from Indiabulls Home Finance, consisting of home loans and loans to builders, and ₹1,200 crore of commercial vehicle loans from IndoStar Capital Finance, two people familiar with the transactions said.

Separately, the NBFC is also initiating a review for undertaking root cause analysis of deviations to credit policies and check on the gaps in the internal financial controls and systems.

IndoStar Capital Finance is a 10,000 crore net worth company owned by Everstone Capital and Brookfield investment, Canada. The agreement between the two companies was signed by IndoStar Capital Finance CEO Deep Jaggi and Shrinithi Capital CEO S Sellamani.

Sridhar and his family have paid stamp duty worth Rs 1.35 crore for these deals, which were registered on 6th September, showed the documents accessed by ET.

Its net revenues from operations were down at Rs 126.60 crore during the April-June quarter of 2021-22, as against Rs 149.60 crore in the same period of 2020-21, Indostar said in a release.

Shares of the company closed 0.35 per cent up at Rs 54.90 apiece on BSE.

"From a portfolio size of Rs 6,000 crore in 2018, the corporate book is down to Rs 2,500 crore as of date, which is a reduction of around 60 per cent (We have collected Rs 3,500 crore). By March 2022, the wholesale and corporate book will become zero," executive vice-chairman and chief executive R Sridhar said. The company will continue to focus on and expand its retail segment, he said.

HDFC Securities recommended reduce rating on Indostar Capital Finance with a target price of Rs 303 in its research report dated November 07, 2020.

Indostar Capital Finance Ltd., incorporated in the year 2009, is a Small Cap company (having a market cap of Rs 3633.97 Crore) operating in NBFC sector.

The firm has further accelerated its retailisation strategy in a challenging market environment and has equipped itself with capital to pursue growth opportunities.

Jaggi joins from HDB (a wholly-owned subsidiary of HDFC Bank), where he was head of asset finance for the past 10 years and was responsible for the P&L of commercial vehicles, construction equipment, passenger vehicles and tractor businesses. He has been associated with Cholamandalam Finance and Apollo Tyres in his earlier roles.

The BSE SmallCap index was trading 0.7 per cent up at 14975.49.

Motilal Oswal recommended Neutral rating on Indostar Capital Finance with a target price of Rs 290 in its research report dated August 13, 2020.

HDFC Securities recommended reduce rating on Indostar Capital Finance with a target price of Rs 267 in its research report dated August 14, 2020.

The decision was taken at the company's board of directors meet on August 12 to declare and approve quarterly results for quarter ended June 2020, the non-banking finance company said in a regulatory filing.

The rally makes the company the top-performer on the BSE Finance Index this year.

Key support level for the Nifty is placed at 10,261.3, followed by 10,211.4. If the index moves up, the key resistance levels to watch out for are 10,377.4 and 10,443.6.

Glenmark Pharmaceuticals was the star performer of the day, wherein HSBC Pooled Asian Equity Fund sold 18,79,542 shares at Rs 527.77 per share on the NSE.

The equity infusion by Brookfield is certainly a positive development, especially given the pedigree of the investor.

Pace Stock Broking Services acquired 6,55,314 shares in IndoStar Capital Finance at Rs 285.05 per share on the NSE and 7,45,264 shares at Rs 285.04 per share on the BSE.

The key support level for Nifty is placed at 9,101.47, followed by 8,887.98. If the index moves up, key resistance levels to watch out for are 9,431.22 and 9,547.48.

As per the combination notice filed with the CCI, the proposed acquisition of IndoStar's equity shares involve three steps.