Synopsys:
IndoStar Capital Finance Limited has sold its entire stake in its subsidiary, Niwas Housing Finance Ltd, to Witkopend BV for a consideration of Rs.1,705.95 crore.
The shares of this non-banking financial company, which is involved in corporate lending, vehicle financing, and other services, surged 5.66 percent after it sold its subsidiary.
With a market capitalization of Rs. 4,408 Crore, the shares of IndoStar Capital Finance Limited opened at Rs. 333.00 per equity share, from its previous day’s closing price of Rs. 314.00,and made an intra-day high of Rs. 333.00 (5.66 percent,) which is the same as the open price.
Stake sale
IndoStar Capital Finance Limited has completed the sale of its entire stake in its subsidiary, Niwas Housing Finance Private Limited (formerly IndoStar Home Finance Private Limited), to Witkopeend BV, an affiliate of BPEA EQT Mid-Market Growth Partnership. This major transaction marks a significant milestone for IndoStar and is valued at Rs.1,705.95 crore.
The proceeds from the transaction are expected to help the company improve its liquidity position, accelerate profitability, and create more value in its core business areas. The Reserve Bank of India approved the transaction earlier this year, and the transfer of 45 crore equity shares to the new buyer.
This strategic decision allows IndoStar Capital Finance Limited to sharpen its business focus and invest more deeply in areas where it already has strong operational capabilities, especially in Tier 3 and Tier 4 towns. The move also highlights the company’s effort to build a stronger financial foundation and improve long-term returns for its stakeholders.
About The Company
IndoStar Capital Finance Ltd is a non-banking financial company (NBFC) that mainly provides loans for vehicle purchases and to small businesses. The company started in 2009 and has a strong presence in smaller towns and cities across India (23 states).
It helps customers who may not have easy access to bank loans by offering simple and flexible financing options. IndoStar aims to support growth and entrepreneurship by making credit more accessible to individuals and small enterprises.
The company’s revenue from operations increased from Rs. 1,396 crore in FY24 reaching Rs. 1,404 crore in FY25, reflecting strong business growth. Net profit also rose from Rs. 116 crore to Rs. 121 crore, indicating better cost management and profitability. These figures highlight a solid improvement in both revenue and overall financial performance.
Written by Sudeep Kumbar
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