Indostar Capital Finance Announces ₹30,000 Lakh NCD Issue to Strengthen Capital Base and Boost Lending Operations

1) Hariom Pipe Industries Limited

• Business Overview – Headquartered in Hyderabad, Telangana, Hariom Pipe Industries Limited is an integrated steel manufacturer with a stronghold in the South Indian market. It has a diverse product portfolio consisting of Mild Steel (MS) Billets, Pipes and Tubes, Hot Rolled (HR) Coils, and Scaffolding Systems, our top-quality products cater to a variety of industrial applications across multiple sectors.
• Recent Filings – Company in its Board Meeting held on September 24, 2024, approved an increase in authorized share capital from ₹40 crores to ₹50 crores. The company also plans to raise up to ₹700 crores through the issuance of equity or other eligible securities via qualified institutions placement (QIP) or other permissible modes. The fundraising reflects the company’s strategic intent to strengthen its balance sheet, fund new projects, and capitalize on growth opportunities.
• Outlook –
  • Company aims to reach  ₹2,500 Cr. in revenue by FY26 without compromising on profitability.
  • Company is committed to a substantial capacity expansion, driven primarily by internal accruals, reducing our reliance on long-term debt.
  • Company is confident in achieving strong revenue growth, supported by expanding dealer network, penetrating new geographies, and deepening presence in existing markets.
• 2Y Price Chart –

2) RBM Infracon Limited

• Business Overview – Incorporated in 2013, RBM Infracon Limited specializes in the engineering, execution, testing, commissioning, and operation & maintenance of mechanical and rotary equipment for industries such as oil & gas refineries, cement, fertilizers, petrochemicals, and coal/gas-based power plants.
• Recent Filings – Company has received a work order worth ₹11 Cr from Nayara Energy Limited for LPG & Hydrogen Sphere M&I, valid from 21 Sep 2024 to 30 Sep 2027. This, along with other major contracts amounting to ₹3,546 Cr secured this month, significantly boosts revenue projections and strengthens market presence.
• Outlook –
  • Company’s revenue is projected to grow with CAGR of 57% to 65% from FY24 to FY26.
  • Company’s operational margin is expected to grow at a CAGR OF 13-15% from FY24 to FY26.
  • Company plans on Expansion into solar sector by the end of FY25.
• Price Chart since listing –

3) Indostar Capital Finance Limited

• Business Overview – Company is a NBFC, focuses primarily on commercial vehicle finance and housing finance, with a growing presence in Tier 2 and 3 cities. Company also lend to small and medium enterprises for their business financing needs, including working capital, business expansion, or other requirements.
• Recent Filings – Company has announced the issuance of secured, non-convertible debentures each face value of ₹1,000 ,worth up to ₹30,000 lakh. This includes a base issue of ₹15,000 lakh, with the option to raise another ₹15,000 lakh if there is enough demand. This NCD will enhance company’s capital base and provide additional liquidity, allowing the company to fund its lending operations.
• Outlook –
  • Company plans to expand its footprint by opening 80 to 100 branches, which will help drive deeper penetration into underserved markets.
  • Company maintains a healthy capital adequacy ratio of 27.7% and has enough liquidity to support its growth plans. 
  • Company’s strategy of refinancing higher-cost loans with lower-cost bank borrowings will enhance profitability and ROE.
  • IndoStar is expanding into small-ticket SME loans in underbanked areas, targeting high yields
• 2Y Price Chart –

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