The Silicon Review ^Asia

Indo Star Capital Finance Ltd plans to acquire the CV finance business of India Infoline Finance Ltd (IIFL Finance). Indo Star signed a binding agreement to carry out the development. The announcement was made public on Monday.

Indo Star is a non-banking financing company and IIFL Finance is a subsidiary of IIFL Holdings Ltd.

The acquisition includes the following transaction: The entire CV finance AUM (Rs. 3,949 crores) as on December 31 last year, Loan portfolio worth Rs. 2,450 crore and securitization and assignment portfolio of worth Rs. 1,499 crore.  The current employee team of IIFL Finance (CV finance) comprises of 1,337 and is spread among different branches in 18 states. The gross disbursement for FY18 was in excess of Rs.3000 crore and Rs. 1,732 crore for the first half of the financial year.

The above transaction has been approved by the board members of both the companies.

According to R. Sridhar, the acquisition will help Indo Star to speed up the timeline for achieving the goal of becoming one of the big names in the field of retail finance NBFC. The company has a diversified and profitable asset book with strong growth prospects. Mr. Sridhar is the CEO &Executive VP of IndoStar.

The non-banking financial company, IIFL Finance provides small ticket product loans to its customers. Their service includes gold loans, SME loans, micro-finance loans, capital market,and others.

IndoStar Capital Finance Ltd was established in 2009. The company initially started a corporate lending business and was promoted by EverStone Group in 2011.