Indostar to acquire CV finance biz of IIFL

IndoStar Capital has signed a binding agreement to acquire the commercial vehicle (CV) finance business of India Infoline Finance Limited (IIFL Finance).

IIFL Finance is a material subsidiary of IIFL Holdings. The acquisition includes the entire CV finance AUM of Rs. 3,949 crore as on December 2018 comprising of Rs. 2,450 crore of loan portfolio and Rs. 1,499 crore of securitisation, together with 1,337 strong employee team located in 161 branches spread over 18 states. The boards of both the 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, construction finance, gold loans, SME loans, capital market and micro-finance loans.

IndoStar is a non-banking finance company (NBFC) registered with the Reserve Bank of India as a systemically important non-deposit taking company. Indostart Capital has been building its retail lending business which accelerated last year with the set-up of CV finance and Affordable Housing Finance businesses.

On Monday, at 11:52 hours, the shares of IIFL Holdings were trading down by 5 per cent at Rs. 391.40, while Indostar Capital Finance was trading at Rs. 316.20 up by 2.05 per cent. Meanwhile, BSE Sensex was at 36,301.70 level, down by 0.46 per cent.