Indostar Capital Offer For Sale Opens May 3, Promoters To Sell 14% Stake

Indostar Capital Finance Ltd. will launch its offer for sale on Wednesday, where two promoters of the non-banking lender are expected to offload 14.21% stake.

The issue will be carried out on a separate window provided to the stock exchanges—BSE and NSE—exclusively for this purpose. BSE is the designated stock exchange for the OFS.

Promoters will put 1.93 crore shares on the block for retail and non-retail investors during the two-day offer. Of this, 19.34 lakh have been reserved for retail investors, whereas more than 1.74 crore shares have been included in the non-retail offer size.

During the issue, Everstone Capital Partners II LLC will sell 11.35 lakh shares, whereas Indostar Capital will offer 1.82 crore shares, representing 0.83% and 13.38% of the company's overall equity share capital, respectively.

The floor price for the offer for sale has been pegged at Rs 95 per share.

The offer for sale will begin on May 3 for non-retail investors. They will be allowed to carry forward their unallotted bids to the next day for allocation to them in the unsubscribed portion of retail category.

Retail investors can place bids worth up to Rs 2 lakh for the offer for sale on May 4. The offer will have 10% of the shares reserved for the retail category.

Allocation will be done at or above the floor price on a price priority basis at multiple clearing prices, "except for retail bidders, who shall have an option to bid at the cut-off price".

Bidders can bid under the retail category or non-retail category. Indicative price for the non-retail category shall be displayed separately, while there will be no indicative price for the retail category.