IndoStar Capital Finance Limited has sold a portion of its legacy corporate loan book, amounting to ₹174 crore, to Assets Care & Reconstruction Enterprise Limited. The transaction resolves stressed accounts under RBI guidelines.
IndoStar Capital Finance Limited has taken a significant step in reducing its stressed portfolio by approving the sale of part of its legacy corporate loan book to Assets Care & Reconstruction Enterprise Limited (ACE).
The sale includes certain accounts categorised under Stage 3, with outstanding dues amounting to ₹174 crore. The transaction was resolved at carrying value on December 31, 2024, through an ARC sale under the Swiss Challenge method, as per the Reserve Bank of India’s Master Directions on the Transfer of Loan Exposures.
This move is part of the company’s strategy to streamline its financials and reduce non-performing assets.
IndoStar Capital Finance Limited (ICFL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. It is co-promoted by Brookfield and Everstone, offering a wide range of financial products such as commercial vehicle finance, construction equipment loans, home finance, and micro-loans. The company focuses on serving customers primarily in Tier 2, 3, and 4 towns, providing tailored financial solutions It also has two wholly-owned subsidiaries, IndoStar Home Finance and IndoStar Asset Advisory.
On January 01, 2025, IndoStar Capital Finance’s share price traded 1.52% higher at ₹373.85 at 2:00 PM on the NSE. The stock opened at ₹271.20, higher than ₹269.75 at its previous close.
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