Satin Creditcare Network Limited, the second largest microfinance company in India, is in the process of raising Rs 205 crore from overseas investors, promoters and IndusInd Bank via a preferential allotment.
Approved by the Board, this preferential allotment is a combination of equity and debt instruments to augment the capital base and support business growth.
As part of the current round of capital raise Rs 160 crore will be raised via issuance of equity securities to investors and promoters, while Rs 45 crore will be through issuance of debt securities to IndusInd Bank. Of the equity investment, Rs 80 crore will be from Kora Investments and Rs 20 crore from Nordik Microfinance Initiative, an existing investor in Satin.
The company has also entered into a tie-up with IndusInd Bank under which Satin will act as a business correspondent agent to IndusInd for microfinance business on mutually agreed terms and conditions.
H P Singh, the Chairman and Managing Director of Satin Creditcare said, "The fund raising has invigorated our confidence even further. It will not only help elevate the company's capital base but also support company's future growth plans. We believe, this development will surely boost the confidence of the overall microfinance sector, which has been through a tough period post the currency ban announcement in November 2016."
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks