Shares of IndoStar Capital Finance Ltd. rallied 13% to hit a 52-week high of Rs 343 on 20th September after the company announced the sale of its subsidiary IndoStar Home Finance for a total consideration of Rs 1,750 crore.

IndoStar Capital Finance sold its subsidiary, IndoStar Home Finance Private Limited (IHFPL), to Witkopeend B.V., an Amsterdam-based affiliate of private equity investor BPEA EQT Mid-Market Growth Partnership, for Rs 1,750 crore on a fully diluted basis.

The deal is subject to regulatory approval from the Reserve Bank of India and consent from lenders and shareholders. After the transaction closes, EQT will invest Rs 500 crore into IHFPL to support IndoStar’s growth in vehicle finance and small business loans.

Bobby Parikh, chairman of IndoStar, emphasized the strategic importance of the sale, highlighting a renewed focus on core business areas. He expressed confidence that IndoStar Home Finance will continue to thrive under EQT’s leadership.

Over the past year, IndoStar shares have surged 80%, compared to a 25% rise in the Nifty 50 index during the same period.

The company’s market capitalisation rose to Rs 4,308 crore.

At 11:21 AM, the shares of IndoStar Capital Finance were trading 4.82% higher at Rs 316.20 on NSE.

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