Share price of this small-cap NBFC stock jumped by nearly 4.86% on NSE to Rs. 194 in the morning trading session of March 28th, from its previous close of Rs. 185, after the company announced reducing its stressed portfolio.
With a market capitalisation of Rs. 2,393.4 crores, at 10: 46 a.m. the shares of IndoStar Capital Finance Limited were trading in the green at Rs. 192.1, up by nearly 3.84 percent.
In the last one year, the company has delivered positive returns of about 75.6 percent and nearly 11.7 percent in the last six months. So far in 2024, it has given positive returns of around 11.2 percent.
According to recent regulatory filings with the stock exchanges, IndoStar Capital Finance Limited (IFCL) took another significant step forward in reducing its stressed portfolio.
This is achieved by approving a transaction for the sale of a portion of its SME loan portfolio worth Rs. 39.5 crore to Asset Reconstruction Company. Further, the said transaction is expected to be concluded before 31 March 2024.
Previously, on February 27th, the company’s Board approved a fund raise of Rs. 456.6 crore via preferential allotment of warrants to Brookfield Asset Management through one of its private equity funds and Florintree Tecserv LLP.
In terms of financials, the company’s revenue from operations grew by nearly 8.9 percent YoY from Rs. 281 crore in Q3 FY22-23 to Rs. 306 crore in Q3 FY23-24.
However, the net profit of the company decreased by 54.05 percent YoY, from Rs. 37 crore in Q3 FY22-23 to Rs. 17 crore in Q3 FY23-24.
As of December 2023, FIIs hold 1.33 percent of the shares, whereas DIIs hold 1.84 percent of the shares in the company, aggregating to 3.17 percent of the institutional holdings.
Incorporated in 2009, IndoStar Capital Finance Limited (ICFL) is registered with the Reserve Bank of India (RBI) as a systemically important non-deposit-taking NBFC.
Brookfield, one of the leading global alternative asset managers is the largest shareholder and promoter of ICFL, holding 56.20 percent, followed by the Everstone group at 18.8 percent, as of September 2023.
Written by Shivani Singh
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