Brookfield to pick up 40 pc stake in IndoStar Capital for Rs 1,450 cr

Mumbai, Jan 31 () Private equity and real estate investor Everstone Group on Friday said it has entered into an agreement whereby Brookfield Business Partners, together with its institutional partners, will be investing Rs 1,450 crore in IndoStar Capital Finance.

Through this investment, Brookfield will acquire 40 per cent stake in the non-banking finance company.

The overall investment will comprise a combination of primary investment in equity shares and compulsorily convertible preference shares of Rs 1,225 crore along with a secondary purchase of shares from IndoStar Capital Mauritius, a company statement said.

"We are delighted to partner with a reputable global investor such as Brookfield and welcome them to the IndoStar family. We see opportunities to continue delivering substantial value to IndoStar's customers, employees and investors," IndoStar Chairman Dhanpal Jhaveri said. He is also the Vice Chairman of Everstone India

The fresh investment by Brookfield will support the growth of IndoStar's retail business.

"We look forward to partnering with Everstone and the IndoStar management team to further scale the business," Brookfield's Senior Vice President Aditya Joshi said.

The investment remains subject to receipt of regulatory approvals.

IndoStar Capital Mauritius continues to be the promoter and an active shareholder in IndoStar Capital Finance, which it built from the ground up since 2011.

IndoStar has assets under management of Rs 10,600 crore and offers a wide range of loans to nearly 60,000 customers. HV ABM ABM