IndoStar Capital to acquire CV finance biz of India Infoline

The acquisition includes the entire CV finance AUM of Rs 3,949 cr as on December, 31, 2018, comprising Rs 2,450 cr of loan portfolio and Rs 1,499 cr of securitisation/assignment portfolio, together with 1,337 strong employee team located in 161 branches spread over 18 states. This team has achieved a gross disbursement in excess of Rs 3,000 cr for FY18 and Rs 1,723 cr for H1FY19. The boards of both companies have approved the above transaction.

IIFL Finance is a diversified NBFC providing small-ticket loan products to its customers including mortgages, loans against property. It had AUM of Rs 36,400 cr as on Dec 31, 2018; CV loans constituted 11 pc of the AUM. IIFL intends to exit this business and focus on its core focus areas of home loans, SME, gold and micro-finance loans. IndoStar Capital, promoted by Everstone Group in 2011, initially started corporate lending business. Since 2015, IndoStar has been building its retail lending business which accelerated last year with the set-up of CV finance and Affordable Housing Finance businesses. This acquisition would catapult IndoStar into becoming a leading player in the attractive high growth CV financing space and help it to build a diversified profitable lending book with a product mix comprising CV Finance, Corporate Lending, SME Business Loans and Affordable Housing Loans.

R Sridhar, Executive VC & CEO, IndoStar Capital said, “This strategic acquisition which is profit accretive from day one helps IndoStar to significantly accelerate timelines in achieving our goal of becoming the leading retail finance NBFC having a diversified and profitable asset book with strong growth prospects. ”

Nirmal Jain, Chairman, IIFL Group said “this is a win-win transaction for both the organisations.”