What is the problem with IndoStar Capital Finance and why is the stock falling?

You are right that the stock of IndoStar Capital Finance has been on a vertical fall. The stock was locked at 10% lower circuit at Rs.184.30 on Monday, after company found discrepancies in its commercial vehicle loan portfolio. IndoStar specializes in used and new CV financing. The stock has already fallen 68% from its issue price of Rs.572.

IndoStar has marquee PE investors on board like Brookfield and Everstone as co-promoters. IndoStar also provides affordable home finance, through a separate subsidiary. IndoStar will now make an additional provision of Rs.557 crore to Rs.677 crore for this discrepancy and more details are awaited on this front.