SEBI Nods to IndoStar Capital for Rs 2,000 crore IPO
SEBI has shown a green flag to IndoStar Capital Finance to raise an estimated Rs 2,000 crore through initial public offering.
According to the latest update from the analysts, the company had filed IPO papers with Securities and Exchange Board of India (Sebi) in the month of January. The company is said to receive observations from the regulator on April 3.
It is essential for SEBI to observe any company, who is planning to launch public issues like initial public offer and follow-on public offer and rights issues.
IPO of IndoStar Capital Finance comprises issuance of fresh shares worth Rs 700 crore. Apart from this, existing shareholders will offer up to 2 crore scrips.
The company has a planning of utilizing the net proceeds from the fresh issue towards augmenting its capital base to meet future capital requirements. On the other hand, the IPO will enhance its brand name and create public market for its equity shares in the country.
The IPO is expected to fetch Rs 2,000 crore as per the reliable merchant banking sources.