IndoStar Capital shares were trading up nearly 5% at the open following the August 25 announcement that it was selling a substantial portion of its corporate loan book to Phoenix ARC. At 9:20 a.m., the stock was trading at 183.80, compared with 175.05 at the close of August 25.
IndoStar’s sale includes a number of “classified stage 2” accounts worth around Rs 915 crore as unpaid fees. According to regulatory filings, Phoenix ARC will establish a trust fund to monitor the progress of real estate projects and possibly provide financing to complete them. This will allow IndoStar’s management team to focus on expanding its core retail lending business. As a result of this transaction, the share of the retail lending portfolio in assets under management will increase from 85% to about 95%.
“Thanks to the company’s focus on used vehicle financing over the past year, commercial vehicle loan disbursement yield has reached over 18%, gradually increasing overall yield.” of the investment portfolio. The focus on used commercial vehicles has also led to a drop in average fares. loan amount stood at Rs 7.6 lakh in the first quarter of fiscal year 24,” IndoStar said in a statement. For the quarter ended June 2023, the debt ratio was 1.9 times and the capital adequacy ratio (CAR) was 34.4% on a single basis. During the quarter, net sales increased 4.69% to Rs 299.09 crore in June 2023, while net profit for the same period fell 36.11% to Rs 38.93 crore in June 2023. EBITDA for June 2023 is Rs 9,999. 203.89 crore, down 9.14% from June 2022.
Mumbai-based IndoStar Capital Finance is a non-banking finance company providing corporate finance solutions, vehicle financing, real estate finance and SME loans.
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