It's equity raising time for NBFCs, but capital boom may not lift all boats

Raising equity is more about when now; not why do so

Gunit Chadha, the founder-managing director of APAC Financial Services, takes pride in the fact that his firm secured funding from Multiples Alternate Asset Management in December last year, three months after the shadow banking crisis had blown up. “It tells you that a good business model backed by strong risk management will continue to attract funding. There is significant private equity (PE) interest in funding differentiated non-banking financial companies (NBFCs) today,” he said.

But will it ever be like the boom you saw between FY15 and HIFY18 when PEs had pumped in $2.36 billion into NBFCs?

“Over the last few weeks, we