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Indostar Capital falls 5% after OFS is announced

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

May 03, 2023 / 09:28 AM IST
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Non-banking finance company IndoStar Capital Finance hit a 5 percent lower circuit in the early trade on May 3, a day after it announced an offer for sale (OFS) at the floor price, which was at a 22.8 percent discount from the closing price.

At 9.15 am, the stock was trading at Rs 117 on BSE, down 5 percent from its previous close. Year to date, the stock has lost 20 percent.

The company told the exchanges on May 2 that promoter Indostar Capital and Everstone Capital Partners II LLC planned to sell 19.34 million shares, representing a 14.21 percent stake in the company, through an offer for sale (OFS) at a floor price of Rs 95 a share, which was at 22.8 percent discount from the day’s close of Rs 123.15.

The OFS opens on May 3, 2023 for non-retail investors and on May 4 for retail investors, the company said.

As per the company's announcement, 10 percent of the offer size will be reserved for retail investors, subject to the submission of valid bids.

In case retail investors do not subscribe to the reserved portion, the unsubscribed shares will be made available to non-retail investors who opt for carry forward.

A minimum of 25 percent of the offered shares will be set aside for mutual funds and insurance companies, subject to valid bids at or above the floor price.

The allocation will be made on a price priority basis at multiple clearing prices, following the SEBI OFS circular, except for retail investors, who can bid at the cut-off price, the company said.

Motilal Oswal Financial Services Ltd will act as the "selling broker" and the Bombay Stock Exchange (BSE) has been designated as the stock exchange for the OFS.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​

Moneycontrol News
first published: May 3, 2023 09:28 am

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