IndoStar’s CEO infuses ~100 cr for 5% stake
R Sridhar, who recently joined Everstone-backed IndoStar Capital Finance, has infused around ~100 crore into the company.
The financial-services veteran has joined IndoStar as executive vice-chairman and chief executive officer, taking over from Vimal Bhandari, who had led the firm since 2011.
While Sridhar was not available for comment, sources close to the company and to him have confirmed that he had picked up around five per cent stake in the company by infusing around ~100 crore.
It was also learnt his investment had been backed by a few other investors.
Sridhar, who is also senior advisor to Texas Pacific Group since February 2011, was with Shriram Transport Finance Corporation for more than 18 years in various positions, including president and managing director.
He was responsible for building the Shriram Group’s truck finance business. He is expected oversee IndoStar’s growth in its lending businesses. These include corporate lending; small and medium enterprises lending; a fully-owned housing finance subsidiary IndoStar Home Finance and other asset financing businesses.
At the end of March, the company had a net worth of ~1,542 crore. The company was founded by Vimal Bhandari.
IndoStar is the first Indian non-bank financing company to be sponsored by global financial institutions and private equity players, including Everstone Capital, Goldman Sachs, Beacon India Private Equity Fund, ACPI Investment Managers, and CDIB Capital, which is the private equity arm of China Development Financial.