Microlender Satin Creditcare outlines Rs 2Kcr fund raise plan

Micro lender Satin Creditcare (SCNL) has outlined a Rs 2,000 crore fund raise plan by issuing debt securities on a private placement basis.

The board of directors of the company will seek approval of shareholders at the upcoming annual general meeting on July 6.

SCNL seeks to issue non-convertible debentures on a private placement basis on one or more tranches aggregating to up to Rs 2,000 crore, the company said in its annual report 2016-17.

The company said the funds can be raised in about one year's time of getting shareholders' approval.

On the rationale of fund raise plan, SCNL said it has made borrowing arrangements with a large number of lenders and continuing on track of diversification of sources in view of expanding business operations and to augment capital base and to meet capital requirements.

During the fiscal ended March 2017, SCNL raised Rs 500 crore as refinance capital from Nabard of which Rs 300 crore was raised post demonetisation, showed the annual report.

It also raised Rs 250 crore in a fresh equity sale to domestic and foreign institutional investors.

Company's financing needs are set to increase as it also incorporated a wholly-owned housing finance subsidiary in April this year for providing loans to affordable housing segment.

"The company continues to recover from the impact of demonetisation and the worst is behind us," SCNL Chairman and Managing Director HP Singh said.

Delhi-headquartered Satin Creditcare disbursed over 1.57 crore loans totalling Rs 3,594 crore during 2016-17 against Rs 3,606.11 crore in the previous fiscal.

During 2016-17, SCNL also acquired over 7.97 equity stake in Taraashna Service-a business correspondent-- equivalent to 87.83 per cent stake making the latter its subsidiary firm.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)