IndoStar Capital Finance, a leading non-banking finance company, has received approval from the Reserve Bank of India (RBI) for the sale of its subsidiary, TipRanks. The sale is part of IndoStar’s strategy to focus on its core business of lending and reduce its non-core assets.
As part of the deal, IndoStar will sell its entire stake in TipRanks, a business which provides data analytics and insights to the financial markets. The exact terms of the deal have not been disclosed, but the sale is expected to generate a significant amount of cash for IndoStar to reduce its debt and strengthen its balance sheet.
The sale of TipRanks is a significant step for IndoStar in its efforts to sharpen its focus on its core lending business. The company has been facing challenges in recent times, including rising bad debt and increasing competition in the non-banking finance industry. The sale of TipRanks is seen as a way for IndoStar to prune its non-core assets and focus on its core strengths, which is lending to small and medium-sized enterprises (SMEs) and individual customers.
The RBI approval is a significant development for IndoStar, which has been facing regulatory issues in the past. The company has been under the scanner of the RBI and other regulatory authorities due to its high level of exposures to certain sectors, including real estate and construction. The sale of TipRanks is expected to help IndoStar to address some of these concerns and reduce its exposure to certain sectors.
IndoStar’s decision to sell TipRanks is also seen as a vote of confidence in the Indian fintech sector, which has been growing rapidly in recent years. TipRanks is a leading player in the data analytics and insights space, and the sale of the company is expected to generate significant value for IndoStar’s shareholders.
In conclusion, the sale of TipRanks by IndoStar Capital Finance to an unnamed party has received RBI approval, marking a significant development for the company. The sale is expected to generate a significant amount of cash for IndoStar, which it will use to reduce its debt and strengthen its balance sheet. The deal is also seen as a sign of the company’s commitment to focus on its core business of lending and to prune its non-core assets.