Shares of IndoStar Capital Finance are in focus on Monday, December 29, after the company informed stock exchanges about the sale of a portion of its commercial vehicle (CV) loan portfolio as part of efforts to reduce stress in its balance sheet.
In a regulatory filing, IndoStar Capital Finance said its board has approved the sale of a segment of its commercial vehicle loan book to Phoenix ARC Private Limited. The total dues outstanding under this transaction amount to Rs 135.73 crore, while the purchase consideration is up to Rs 108.55 crore.
The company clarified that the transaction was completed on December 29, 2025, in accordance with the Reserve Bank of India’s Master Directions on Transfer of Loan Exposures, 2021, as amended from time to time. The sale is aimed at resolving stressed accounts and improving asset quality.
IndoStar Capital Finance stated that the decision marks a “decisive step forward” in reducing its stressed portfolio. The accounts transferred as part of the transaction have been fully resolved on the same date.
Background on IndoStar Capital Finance
IndoStar Capital Finance operates as a non-banking financial company with a presence across commercial vehicle finance, affordable housing finance, and small business lending. In recent quarters, the company has been focusing on portfolio restructuring, balance sheet cleanup, and selective de-risking of assets amid a challenging credit environment.
The sale of stressed CV loans aligns with the broader trend among NBFCs of accelerating recoveries through asset reconstruction companies, especially in segments that have seen higher delinquencies post-pandemic.
Phoenix ARC Private Limited is an asset reconstruction company engaged in acquiring and resolving stressed loan exposures from banks and financial institutions.
The company has informed both the BSE and NSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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