IndoStar Capital Finance Limited has announced the allotment of 4,344 equity shares pursuant to the exercise of stock options under its Employee Stock Option Plans (ESOP) 2016 and 2018. The allotment was communicated to BSE Limited and National Stock Exchange of India Limited on January 12, 2026.

Allotment Details

The share allotment was approved by Mr. Randhir Singh, Managing Director designated as Executive Vice Chairman, exercising authority conferred by the Board of Directors through a resolution passed on May 11, 2025. The allotment breakdown is as follows:

Impact on Share Capital

Following the allotment of these equity shares, the company's capital structure has been updated. The paid-up equity share capital has increased from the previous level to accommodate the newly issued shares.

Regulatory Compliance

The allotment was formally communicated to both major stock exchanges where IndoStar Capital Finance shares are listed. The company informed BSE Limited (Scrip Code: 541336) and National Stock Exchange of India Limited (Symbol: INDOSTAR) about the share allotment for record-keeping purposes.

The communication was signed by Shikha Jain, Company Secretary and Compliance Officer (Membership No. A59686), ensuring proper regulatory compliance and transparency in the allotment process. This allotment represents the ongoing implementation of the company's employee stock option plans, providing equity participation opportunities to eligible employees under the established ESOP frameworks.

IndoStar Capital Finance has completed the sale of a portion of its commercial vehicle loan portfolio to Phoenix Asset Reconstruction Company (ARC) for ₹109.00 crores. The transaction involves outstanding dues aggregating to ₹136.00 crores, marking a significant step in the company's ongoing asset portfolio optimization strategy.

Transaction Financial Details

The key financial parameters of the transaction are outlined below:

This transaction represents a recovery rate of approximately 80.15% on the outstanding loan amount, which is considered favorable in the asset reconstruction market.

Strategic Portfolio Management

This asset sale represents IndoStar Capital Finance's continued focus on portfolio management and optimization. The transaction allows the company to:

• Reduce exposure to the commercial vehicle lending segment
• Improve asset quality metrics by divesting specific loan portfolios
• Generate immediate liquidity of ₹109.00 crores for other business operations
• Streamline its loan portfolio composition

Market Context

Asset reconstruction companies like Phoenix ARC typically acquire loan portfolios from banks and financial institutions, often focusing on distressed or non-performing assets. The completion of this transaction reflects the ongoing activity in India's asset reconstruction market, where ARCs play a crucial role in helping financial institutions manage their loan portfolios and recover value from stressed assets.

IndoStar Capital Finance operates in the financial services sector, providing various lending and financing solutions. This strategic divestment aligns with the company's broader portfolio restructuring initiatives.