Financial services veteran R Sridhar has joined private equity firm Everstone Capital-backed non-banking financial company (NBFC) IndoStar Capital Finance Pvt. Ltd as executive vice chairman and CEO, the firm said in a statement.
In his new role, Sridhar will oversee the NBFC's growth across its lending businesses, including SME lending, and a wholly-owned home finance subsidiary, IndoStar Home Finance Pvt. Ltd, it said.
He will replace Vimal Bhandari who has been leading the firm since 2011. Bhandari will remain on the board of IndoStar and stay as a shareholder.
Sridhar previously worked for over 10 years with Shriram Transport Finance Company Ltd, which is part of the Shriram group, as managing director and CEO. Earlier, he also served as chairman of Finance Industry Development Council (FIDC), a self-regulatory organisation for NBFC-AFCs. He has over three decades of experience in the financial services sector.
Sridhar’s appointment comes as the NBFC witnesses strong growth and aims to grow its retail lending business, the firm said.
"The strong sponsorship of Everstone and other shareholders, combined with a well-capitalised balance sheet and a highly profitable business, provides an excellent base for the next level of growth,” Sridhar said.
IndoStar Capital, which started operations in 2011, has seen its net profit grow at a CAGR of 31%. As on 31 March 2017, the company had a loan book of Rs 5,247 crore and a net NPA of 1.2%.
Notably, the appointment also comes amid the buzz around the company's plans to float an initial public offering (IPO). Last year, VCCircle reported that the firm has pushed back plans for an IPO for this year.
IndoStar was established by global financial institutions, including Goldman Sachs, Ashmore Group Plc, Everstone Capital, Baer Capital Partners and ACP Investments. In FY2014-15, Ashmore exited the company by selling its stake to Everstone and ACP Investments.
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