Achal Investments to offer shares at Rs 42 each

Micro finance company Achal Investments Ltd has informed the BSE that it has alloted 1.6 million shares of Rs 1 each at a premium of Rs 41 per share totaling to Rs 6.72 crore.

The proceed will be utilised for the company's expansion plans, joint ventures and potential acquisitions. The company is currently engaged in the business of financing, promoting and providing assistance in the establishment and growth of industries, and industrial undertakings.

The company's share is trading with a gain of 1.44 per cent at Rs 17.60 apiece on an early Tuesday morning. However, its stock is currently trading near  52-week low.

According to a a study by the National Bank for Agriculture and Rural Development, the current credit by micro finance institutions is at Rs 20,000 crore. This is when the total micro credit demand is estimated at Rs 2.4 lakh crore, thereby, leading to a huge gap in, and consequently a bigger scope for, exponential growth in micro finance.

Achal Investments Ltd focuses on small finance and works with low-income families to provide financial solutions. It is also in the business of providing term loans and working capital support to traders and medium sized enterprises.