Centrum Capital soared 8.26% to Rs 36.70 after the company's board approved transferring the entire business of its two wholly-owned arms to its proposed step-down small finance bank as a slump sale.
The board of directors of Centrum Capital approved the sale of its two wholly-owned subsidiaries - Centrum Financial Services (CFSL) and Centrum Microcredit - to its proposed step-down subsidiary, which is the proposed small finance bank.
The decision was taken at a meeting of the board on Tuesday and is subject to members and other requisite statutory and regulatory approvals, Centrum Capital said in a stock exchange filing.
The wholly-owned arms Centrum Financial Services and Centrum Microcredit have been sold for Rs 316 crore and Rs 110 crore respectively. The deal is expected to close within two months, subject to the regulatory approval from Reserve Bank of India (RBI).
On a consolidated basis, Centrum Capital reported a net loss of Rs 6.92 crore in Q1 FY22 as against net loss of Rs 14.60 crore posted in Q1 FY21. Total income rose 19.2% to Rs 136.34 crore in Q1 FY22 over Q1 FY21.
The Centrum Group has diversified fee businesses and a lending platform for institutions and individuals. institutional services include investment banking, mid-corporates & SME credit and broking to FIIs, pension funds, Indian mutual funds, domestic institutions etc. It also provides MSME credit, wealth management services to HNIs and family offices, affordable housing finance in tier 2 & 3 cities, micro finance loans and retail broking. Its asset management business offers funds across private debt and venture capital.
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