The shares of this financial services provider gained up to 5 percent after the company selling a portion of its SME loan portfolio to Encore Asset Reconstruction Company.
With a market capitalization of Rs 2,154.68 crore, the shares of Indostar Capital Finance Ltd were trading at Rs 173.75 per share, increasing around 3.58 percent as compared to the previous closing price of Rs 167.75 apiece.
According to the corporate filing, Indostar Capital Finance Ltd made another major step forward in decreasing its stressed portfolio by selling a portion of its SME loan portfolio to Encore Asset Reconstruction corporate. The transaction consisted of many stressed accounts totaling Rs 292 crore in principal outstanding.
Looking into the company’s financial, Indostar Capital Finance Ltd’s revenue increased by 6 percent from Rs 294 Crore in Q2FY23 to Rs 313 Crore in Q2FY24. During the same period, net profits decreased by 51 percent from Rs 52 crore to Rs 25 crore.
Indostar Capital Finance raised Rs 3,967 crore in incremental capital in FY2023, contributing to the company’s solid liquidity position. The firm has Rs 1,069 crore in cash or cash equivalents as of March 31, 2023. When compared to the previous year, IndoStar’s Asset Liability Management (ALM) profile has improved significantly this year.
IndoStar operates 427 outlets in 22 states across the country, including Tier 3 and Tier 4 cities. With an emphasis on Commercial Vehicle Finance and Housing Finance, the firm stays committed to developing smart branches that function with better efficiency and less labor.
Indostar Capital Finance Ltd reported return ratios in the recent financial year with a return on equity (ROE) of 7.46 percent and a return on capital employed (ROCE) of 9.15 percent.
Indostar Capital Finance Ltd’s recent shareholding pattern, The Promoters of the Company own 75.00 percent while Retail shareholders own a 21.83 percent stake in the company and Foreign Institutional Investors own a 1.38 percent stake.
Indostar Capital Finance Ltd. is a non-banking finance business (NBFC) that specializes in corporate and retail loans, including commercial vehicle credit, SME finance, and home loan financing.
Written by:- Abhishek Singh
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