BCPV Holdings Increases Stake in IndoStar Capital to 55.98% via Warrant Conversion

IndoStar Capital Finance Limited witnessed a significant shareholding change as BCPV Multiple Holdings Pte Ltd, a promoter entity, converted 1.39 crore warrants into equity shares. The transaction, completed through regulatory disclosure under SEBI regulations, increased BCPV's stake from 51.82% to 55.98%.

Warrant Conversion Transaction Details

The company's Board of Directors approved the allotment through a circular resolution passed on December 20, 2025. BCPV Multiple Holdings Pte Ltd., a Singapore-based promoter entity, exercised their rights to convert warrants into equity shares.

Parameter:	Details
Allottee:	BCPV Multiple Holdings Pte Ltd.
Number of Shares:	1,39,49,323 equity shares
Issue Price:	Rs. 184.00 per share
Balance Consideration:	Rs. 51.33 crores
Total Issue Value:	Rs. 256.67 crores
Category:	Promoter
Conversion Date:	December 20, 2025

Shareholding Pattern Changes

The warrant conversion resulted in a notable shift in BCPV's shareholding percentage. The regulatory filing under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 provides detailed shareholding information.

Shareholding Metric:	Before Acquisition	After Acquisition	Change
Voting Rights Shares:	7,64,82,638 shares	9,04,31,961 shares	+1,39,49,323
Shareholding %:	51.82%	55.98%	+4.16%
Diluted Capital %:	47.35%	55.98%	+8.63%
Warrants Held:	1,39,49,323	NIL	Fully converted

Impact on Share Capital Structure

The warrant conversion has significantly expanded IndoStar's equity base, with the company's paid-up share capital increasing substantially following this allotment.

Capital Structure:	Post-Allotment	Previous Position
Paid-up Capital:	Rs. 161.53 crores	Rs. 147.58 crores
Total Equity Shares:	16,15,32,124 shares	14,75,82,801 shares
Face Value:	Rs. 10.00 per share	Rs. 10.00 per share
Share Increase:	1,39,49,323 shares	-

Regulatory Compliance and Process

The transaction was executed through preferential allotment of equity shares pursuant to exercise and conversion of warrants. The warrants were originally allotted on November 26, 2024, with a two-stage payment mechanism where 80.00% was paid during warrant allotment and the remaining 20.00% during conversion.

BCPV Multiple Holdings Pte Ltd, registered in Singapore, filed the mandatory disclosure on December 23, 2025, confirming the acquisition under Regulation 29(2) of SEBI regulations. The newly allotted equity shares rank pari-passu with existing shares and will be listed on BSE Limited and National Stock Exchange of India Limited.

Strategic Implications

This warrant conversion demonstrates strong promoter commitment to IndoStar Capital Finance's growth trajectory. The Rs. 256.67 crore infusion significantly strengthens the company's capital base, enhancing its financial flexibility and lending capacity as a non-banking financial company. The increased promoter stake to 55.98% reinforces confidence in the company's long-term prospects and strategic direction in the financial services sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.71%	-4.29%	-8.15%	-31.62%	-15.38%	-30.05%

IndoStar Capital Finance Limited , a retail-focused non-banking financial company (NBFC), has reported an 8% sequential growth in quarterly disbursements, signaling positive momentum in its core business segments. The company's strategic shift towards retail lending and its focus on vehicle finance and micro LAP (Loan Against Property) businesses are showing promising results.

Key Financial Highlights

Disbursements: Rs. 927.00 crores, up 8% from Rs. 858.00 crores in the previous quarter
Net Interest Income: Rs. 190.00 crores, marking a 15.7% year-on-year increase
Net Interest Margin: Improved to 7.6% from 5.6% year-on-year
Net Profit: Rs. 10.40 crores, compared to Rs. 18.00 crores in the same quarter of the previous year
Assets Under Management: Rs. 7,564.00 crores

Asset Quality and Capital Position

IndoStar Capital Finance has made significant strides in improving its asset quality:

Gross Stage-III Assets: 3.04%
Net Stage-III Assets: 1.13%
Capital Adequacy Ratio: 37.3%
Debt-to-Equity Ratio: 1.4x

The company completed the sale of stressed assets worth Rs. 309.60 crores to an Asset Reconstruction Company (ARC) for Rs. 220.30 crores, demonstrating its commitment to portfolio quality improvement.

Strategic Transformation and Business Focus

IndoStar Capital Finance has successfully transformed from a corporate lending-focused NBFC to a retail-centric one. Key developments include:

Vehicle Finance: Remains a core growth engine with improving collections and deepened customer relationships
Micro LAP Business: Expanding from Tamil Nadu to Andhra Pradesh, with plans to enter 3-4 states
Housing Finance: Sold its wholly-owned housing finance subsidiary to streamline operations

Operational Improvements

Collection Efficiency: Approximately 92%
Cost of Borrowing: Declined to 10.2% from 10.8% year-on-year
Digital Initiatives: Scaled up customer self-service through the Indo Mitra app and other digital tools

Management Outlook

The management expects disbursements to pick up in the second half of the fiscal year, historically 1.4-1.5 times the first half levels. The company plans to maintain a balanced approach to growth, profitability, and asset quality.

Analyst Conference Call Insights

During the earnings conference call, the management highlighted:

The company's focus on quality growth in vehicle finance and micro LAP segments
Plans to expand the micro LAP business to 3-4 states using the existing vehicle finance branch network
Efforts to improve cost of funds, with incremental borrowing costs now around 9%-9.25%

IndoStar Capital Finance's strategic shift towards retail lending, coupled with its focus on asset quality and operational efficiency, positions it well for sustainable growth in the evolving NBFC landscape. The company's strong capital position and improving funding profile provide a solid foundation for its expansion plans in the vehicle finance and micro LAP segments.