The company, which lends to small businesses, mostly retail service units including shops, has assets under management of around Rs 1,350 crore.
As a part of steps to improve visibility for business growth, NeoGrowth has appointed ace cricketer Ajinkya Rahane
as its brand ambassador. The agreement is for a year which can be extended. Rahane will endorse the company’s business offerings.
Nayyar said the current equity base of Rs 400 crore can support loan growth of Rs 2,000 crore. For growth beyond this, the company will need more capital. Fresh capital of Rs 400-500 crore plus retained earnings should support an AUM of Rs 7,000-8,000 crore.
The discussions are on for appointment of investment bankers. The company is yet to firm up whether existing investors will put in more money or new investors will come.
Its founders — Khaitan brothers ( Dhruv Khaitan and Piyush Khaitan) — hold 28 per cent in the company and Impact investment group LeapFrog
owns 26 per cent. It has a diversified investor base including Kona Capital and India Infoline.
According to rating agency CARE Ratings, Neogrowth had comfortable capitalisation levels as on March 31, 2020 with a capital adequacy ratio (CAR) of 29.80 per cent as against the regulatory requirement of 15 per cent.
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