IndoStar Capital Finance Limited (IndoStar) has successfully completed the sale of its wholly-owned subsidiary, Niwas Housing Finance Private Limited (NHFPL), to Witkopeend B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership (EQT), a global private equity investor. The transaction, valued at ₹1,705.95 crore, marks a significant milestone for IndoStar as it refocuses on its core business verticals.

Transaction Details

The sale, which was initially announced on September 19, 2024, involved the transfer of 45,00,00,000 equity shares of NHFPL held by IndoStar and its nominee shareholders. The completion of the deal on July 17, 2025, followed the fulfillment of various conditions, including:

• Shareholder approval obtained on October 26, 2024
• Reserve Bank of India (RBI) approval
• Completion of a mandatory 7-day public notice period
• Satisfaction of other terms and conditions under the Share Purchase Agreement (SPA)

Strategic Implications

Randhir Singh, Managing Director and Executive Vice Chairman of IndoStar, commented on the transaction: "The completion of the transaction represents a significant milestone in IndoStar's journey. It further enhances our liquidity and capital position and enables us to accelerate our profitability and value creation journey in our focus verticals."

The company plans to utilize the net proceeds from the sale to accelerate growth and value creation in its core business areas:

1. Vehicle Finance
2. Small Business Loans

Market Impact

As a result of this transaction, effective July 17, 2025, IndoStar no longer holds any shares in NHFPL or exercises control over it. NHFPL has ceased to be a subsidiary of IndoStar Capital Finance Limited.

Advisory Roles

Several firms played key roles in facilitating this transaction:

Future Outlook

Devdutt Marathe, Non-Executive Director of IndoStar and Brookfield nominee to the Board, expressed optimism about the company's future: "We look forward to continuing to support IndoStar's management team to deliver value creation for all stakeholders."

IndoStar Capital has announced plans to host an investor meet in the coming weeks to provide a detailed update on its business strategy and path forward.

About IndoStar Capital Finance Limited

IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India and classified as a middle-layered NBFC. With Brookfield & Everstone as co-promoters, IndoStar focuses on providing used and new commercial vehicle financing and small business loans in tier 3 and tier 4 towns across India.

The completion of this transaction underscores IndoStar's commitment to streamlining its operations and focusing on its core competencies in the financial services sector.

IndoStar Capital Finance Limited (IndoStar) has successfully concluded the sale of its wholly-owned subsidiary, Niwas Housing Finance Private Limited (NHFPL), to Witkopeend B.V., an affiliate of BPEA EQT Mid-Market Growth Partnership (EQT). The transaction, which was finalized on July 17, marks a significant milestone for IndoStar and reshapes its strategic focus.

Transaction Details

The sale, which was initially announced on September 19, has been completed for an aggregate consideration of ₹1,705.95 crore. This substantial deal was executed in accordance with the terms of the share purchase agreement among IndoStar, NHFPL, and Witkopeend B.V.

Regulatory Approvals and Process

The transaction underwent a rigorous regulatory process, including:

• Shareholder approval obtained on October 26
• Reserve Bank of India (RBI) approval, subject to specific conditions
• A mandatory 7-day public notice period as per RBI requirements
• Fulfillment of various terms and conditions under the share purchase agreement

Impact on IndoStar's Structure

As a result of this transaction:

• IndoStar has transferred 45,00,00,000 equity shares of NHFPL, including those held by its nominee shareholders, to the purchaser.
• Effective July 17, IndoStar no longer holds any shares in NHFPL or exercises control over it.
• NHFPL has ceased to be a subsidiary of IndoStar.

Strategic Implications

Randhir Singh, Executive Vice Chairman of IndoStar, commented on the transaction's significance: "The closure of the transaction represents a significant milestone in IndoStar's journey that will further enhance our liquidity and capital adequacy, and enable us to accelerate our profitability and value creation journey in our focus verticals."

The net proceeds from this sale will be strategically deployed to accelerate growth and value creation in IndoStar's core business verticals:

1. Vehicle Finance
2. Small Business Loans

Financial Advisors and Legal Counsel

Several prominent firms were involved in facilitating this transaction:

• Financial Advisors: Daiwa Corporate Advisory India Private Limited and Ambit Private Limited
• Legal Counsel: Cyril Amarchand Mangaldas
• Financial and Tax Due Diligence: Ernst & Young LLP
• Additional Legal Support: Samvad Partners

Future Outlook

IndoStar Capital has announced plans to host an investor meet in the coming weeks. This meeting will provide a detailed update on the company's business, strategy, and path forward in light of this significant transaction.

About IndoStar Capital Finance Limited

IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India and classified as a middle-layered NBFC. With Brookfield & Everstone as co-promoters, IndoStar specializes in providing used and new commercial vehicle financing and small business loans, primarily focusing on tier 3 and tier 4 towns.

This strategic divestment underscores IndoStar's commitment to optimizing its business portfolio and focusing on its core strengths in the Indian financial services sector.