Capital First Ltd (CFL) plans to raise Rs 350 crore from International Finance
Corporation (IFC) through subscription to the company's secured non-convertible debentures (NCD).
The funds will bankroll CFL's growth strategy in the unbanked segments of micro, small and medium enterprises (MSME) and individuals (both self-employed and salaried) that lack adequate access to financial services, IFC said in a project disclosure.
The investment will also help CFL diversify its funding and reduce reliance on bank borrowings. it will also increase the company's visibility with other potential foreign and local fixed income investors, said IFC.
Warburg Pincus, through its affiliated funds, collectively holds 65.4% of the company's equity as of March 2015.
Among other major shareholders are financial investors such as Birla Sunlife Asset Management, HDFC Standard Life Insurance, Swiss Finance Corporation, Goldman Sachs Asset Management, DSP Blackrock, Ashburton, and Jupiter Asset Management.
Vaidyanathan, who is the chairman and managing director, holds stocks and stock options of the Company that, on a fully diluted basis, constitute around 13 per cent of the CFL's equity as of March 2015.
The non-deposit accepting Non-Banking Financial Company caters to about 7.60 lakh active customers in 222 locations across India as of March 2015. Of this, almost 1.25 lakh customers are from West Bengal, Assam, Orissa, Chattisgarh, Utarakhand and Madhya Pradesh. Also, almost 1.14 lakh of CFL's borrowers are women.
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