The initial public offer of non-banking finance company Indostar Capital Finance Ltd was subscribed 41% on the first day of the bidding on Monday.

The IPO is of fresh issue of up to Rs 700 crore and an offer for sale of up to 2 crore equity shares (including anchor portion of 9,671,328 equity shares).

“Rs 700 crore is coming into the company as a primary capital, strengthens the capital base of the company, which is required for our growth plan for next two-three years,” he added.

“We came with Rs 1,844 crore of issue, out of which Rs 700 had been the primary and the balance Rs 1,044 had been offer for sale which goes to the existing shareholders who have sold,” said R Sridhar, executive vice-chairman & CEO, Indostar Capital Finance.

The firm is confident with the existing capital plus the Rs 700 crore, which is coming in, is sufficient for for next three years, said Sridhar.