Microfinance major BASIX Group's flagship company Bhartiya Samruddhi Finance Ltd today said it will raise up to Rs 250 crore by selling stakes to a clutch of private equity (PE) players.
"The board has approved rising of funds worth Rs 200-250 crore from PE firms," BASIX Group Country Business Manager S Ramachandran told PTI. The board meeting was held on Friday.
The company is raising funds to meet its capital needs to finance its business expansion plans, he said.
BSFL will initiate the process of appointment of merchant bankers tomorrow for the said issue, Ramachandran said.
The Hyderabad-based Bhartiya Samruddhi Finance Ltd (BSFL) has already raised Rs 75 crore through debt route (through the issue of non convertible debentures).
The company has been looking to raise funds through the various means in the past.
BSFL is registered with the Reserve Bank of India as a non banking finance company. BSFL is a member of Microfinance Institutions Network, or MFIN, which is a self-regulatory group of NBFC MFIs, working to promote microfinance sector in India.
As on October, 2009, BSFL was present in 17,614 villages in 87 districts spread over 14 states, which includes Andhra Pradesh, Karnataka, Orissa, Maharashtra, MP, Jharkhand, Bihar, Rajasthan, Chattisgarh, Uttarakhand and Delhi.
Many MFIs in the country have been facing difficulty to raise fund especially from banks, the main credit provider to the sector. Consequently, these MFIs -- particularly the smaller ones -- are now exploring different ways, including the debt route, to meet funding requirements.
Microfinance sector in the country has faced heightened regulatory scrutiny in recent weeks. The finance ministry has recently advised public sector banks to monitor lending rates of MFIs.
Worried over recent upheavals in the MFI sector, many players have put on hold their plans to raise funds through initial public offerings and now are exploring other avenues.
