Satin Creditcare raises Rs.25 crore

The proceeds from the issuance will be used for company’s growth and working capital requirement.

June 14, 2016 1:28 IST | India Infoline News Service
Satin Creditcare Network Limited has raised Rs. 25 crore by issuing Non-Convertible, Redeemable, Cumulative, Preference Shares (“NCRCPS”) to Karvy Capital Limited. IFMR Capital executed the private placement of the CARE BBB rated Preference shares at coupon of 12.10% p.a and redeemable after approximately 5 years. The proceeds from the issuance will be used for company’s growth and working capital requirement.

Commenting on the transaction, Mr. H P Singh, Chairman and Managing Director - SCNL, said, “This will help us to improve our capital adequacy and further increase our reach.”

“Karvy Capital Demeter Fund is pleased to invest in the Preferential Capital issue of SCNL. It serves our objectives of investing in companies with good management and businesses with well-set processes”, said Mr. Kedar Deshpande, Director – Karvy Capital.

“This preference share issuance denotes the faith of the capital markets in SCNL and will aid the company in achieving its business plan and will also help it continue achieving its mission of serving the unbanked”, Gaurav Kumar, Senior Partner and Head – Origination, IFMR Capital, said on the completion of this issuance.

SCNL has been raising funds through various instruments, such as Term Loans, Sub-debt (Tier 2 Capital), NCD, Preference shares, ECB, Commercial Paper, and Securitization/assignment, etc., in keeping with its strategy to diversify its resource profile. During FY17, the company plans to raise a total of ₹5,000 crore, including both debt and equity.

On 30th May 2016, the company announced its annual results for the year ended Mar 2016 with a GLP of Rs.3,270 crore and PAT (post. Pref. Div.) of Rs. 57.3 crore, growth over previous year of 53% and 86% respectively. With operations across 16 states, and market leading positions in some states, the GLP is expected to increase to Rs.5,000 crore with a PAT of Rs. 100 crore in FY17.

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