Capital First sees infusion of Rs 178 cr

Post this transaction the capital adequacy ratio, already strong at 21.35% as of December 2013, will increase to 24%

Warburg Pincus-backed Capital First Ltd, a non-banking finance company, has raised Rs 178 crore by issuing equity shares on a preferential basis to fund business growth over the coming 18-24 months.

Besides the promoter, Cloverdell Investment Ltd, an affiliate of Wargburg Pincus investing Rs 128 crore, HDFC Life Insurance has infused Rs 50 crore in the finance company.

V Vaidyanathan, chairman and managing director, said the finance company has raised capital to support business growth and as provision during politically uncertain times.

Post this transaction the capital adequacy ratio, already strong at 21.35 per cent as of December 2013, will increase to 24 per cent, he said. The company grew assets under management (AUM) by 29 per cent during the 12-month period ended December 31. The Company’s AUM stood at Rs 9,070 crore as on December 31. The net non-performing assets were 0.19 per cent as on December 31, 2013.

Capital First is into financing Micro, Small and Medium Enterprises (MSMEs) and consumption which is one of the key drivers of the Indian economy. It mainly provides loan against property for MSMEs. The company also provides home loans, gold loans, two wheeler loans, and loans for consumer durables.

It has a distribution network of 168 branches and 1,085 employees across India covering 40 cities.