Capital First announced that it is raising fresh equity capital of Rs 340 crore on a preferential basis at Rs 712.70 per share (face value of Rs 10.00 and premium of Rs 702.70 per share) subject to approval of Shareholders. The company will allot 47,80,000 shares to Caladium Investment Private Limited, an affiliate of GIC, Singapore’s sovereign wealth fund.
Post this transaction, the total capital (including Tier 1 and Tier 2 capital) of the company will increase to Rs 3,263 crore on a consolidated basis and the Capital Adequacy will increase to 21.6%.
For the recently concluded quarterly results, Capital First Limited reported a Profit after Tax of Rs 57.6 crore for Q2 FY17, an increase of 40% from Rs 41.0 crore in Q2 FY16, which is the highest ever quarterly profit in the history of the company.
The Company’s AUM grew 32% to Rs 17,937 crore as on September 30, 2016 on a year on year basis, with its retail loan portfolio contributing to 90.1% of its overall AUM as of September 30th, 2016. The Gross NPA and Net NPA of the company stood at 0.98% and 0.45% respectively as on September 30, 2016 on 120 DPD NPA recognition basis.
V Vaidyanathan, Founder and Chairman, Capital First said, “We are delighted to receive a firm proposal from Caladium to become a new Shareholder of the company, who will provide growth capital to the Company, and we wholeheartedly welcome them. This reaffirms the strong institution built at Capital First over the years in the Indian Financial Services space. Post this transaction the Capital Adequacy Ratio will increase from 19.1% to 21.6%, which will help the Company to continue its future growth plans on a strong capital base.”