Essel Group's NBFC arm sells Rs 145-crore MSME loan book to Adani Capital

Struggling Essel Group's NBFC arm Essel Finance has sold its Rs 145-crore MSME loan book to Adani Capital.

The Essel Finance has a secured loan book of around Rs 145 crore comprising 1,100 customers, employs 40 and present in 10 cities, a statement from Adani Capital said without disclosing other deal details.

Gaurav Gupta, the chief executive of Adani Finserve, the holding company of the Adanis' NBFC vertical said the acquisition complements their existing MSME business and helps them expand to new geographies including Noida and Chennai.

Describing the deal as an opportunistic acquisition, he said their near-term goal is to focus on improvising processes, leveraging technology and enhancing productivity.

Launched in April 2017, Adani Capital had a loan book of Rs 1,100 crore of December 2019, with the housing finance arm contributing Rs 150 crore. It serves over 18,000 entrepreneur borrowers and homeowners across both the business.

Primarily operating in the Western states Adani Capital is aiming to gradually expand its footprint to Madhya Pradesh, Chhattisgarh and Orissa as part of its target of clocking a loan book of around Rs 3,000 crore by the end of the next fiscal.

Adani Capital is focused on providing loans to small and micro entrepreneurs for income generation and operates through 56 branches across Gujarat, Maharashtra, Rajasthan and Karnataka.

Adani Capital began as an NBFC with a focus on MSME and corporate finance with ticket size ranging from Rs 1-25 lakh.

The MSME finance mainly includes business loans, farm sector finance, commercial vehicle loans and supply chain finance, while in corporate finance, it mainly operates in infrastructure real estate and corporate loans.

Later it entered the home finance too with a focus on the weaker section of the society.