Indostar Capital Finance
Limited NCD IPO
Bond Overview
• Indostar
Capital
Finance
Limited
Non-Convertible Debentures (NCDs)
• Rated AA- (Stable) by CARE Ratings
• Coupon rates: 10.3% - 10.7% p.a.
• Tenures: 24, 36, and 60 months
• Secured and redeemable
issuing
Coupon Rates and
Effective Yield
⚬ Various series with different coupon rates and
yields
⚬ Example: Series 1 - 10.3%, Series 5 - 10.7%
Allocation Ratio
⚬ Allocation ratio prepared and approved by
SEBI
⚬ Category-wise
allocation
subscription closes
after
IPO
Investment Process
⚬ Step 1: Apply via GoldenPi for investments below
₹10 lakhs
⚬ Step 2: Online application for amounts above ₹10
lakhs
Issue Analysis - Pros
⚬ High coupon rates up to 10.7%
⚬ Strong Capital Adequacy Ratio
⚬ Secured NCDs with stable outlook
Issue Analysis - Cons
⚬ Rating of AA- by CARE (lower grade)
⚬ Regulatory risks from RBI and other regulators
Liquidity
⚬₹68.08 crores in unencumbered cash and liquid
investments as of March 31, 2024
⚬NCD issuance expected to improve liquidity further
Financial Overview
⚬ Revenue, Expenses, Net Worth, and Profit After
Tax (PAT)
⚬ Cash flow from operating, investing, and
financing activities
Ratio Analysis
• Key financial ratios to assess performance
About Indostar Capital
Finance Limited
⚬ Established in 2011 as a non-banking finance
company (NBFC)
⚬ Focus on retail financing (95.28% AUM in retail
finance)
⚬ Services:
Commercial
vehicle
finance,
housing finance, SME, and corporate lending
Strengths
• Strong capital base: Tier I CRAR of 28.87%
• Diverse funding sources from banks and investors
• Institutional backing with governance oversight
Weaknesses
• Limited diversification in revenue streams
• Intense competition in the financial services sector
Conclusion
⚬ The high yield and strong liquidity profile make the
Indostar NCD IPO an attractive investment option
⚬ Evaluate based on risk appetite, rating, and
regulatory environment
Thank you!
To know more, visit:
https://goldenpi.com/blog/investment-guide/ncd-ipo/indostar-capital-finance-limited-ncd-ipo-septembe
r-2024-should-you-invest/