Burmans pick up strategic stake in DMI Finance

To tap overseas investors, family offices for further equity infusion

The Burman family, promoters of Dabur India; has picked up strategic stake in DMI Finance Ltd, a Delhi-based non-banking finance company, for an undisclosed sum.

Yuvraj C Singh Joint managing director, DMI Finance said this investment marks the Burman family’s entry into the secured lending space. Gaurav Burman will join the board of DMI. He declined to elaborate terms of the deal.

The finance company will go in for further capital infusion in next 12-18 months. It will commence talks with domestic as well as overseas investors including family offices for further resources (capital).

At present, the loan book, predominantly consisting loans to real estate players, stands at Rs 500 crore. The plan is to ramp up corporate loan-book of DMI to Rs 1,500 crore over next 12-18 months.

As business expands the funding model will go under change. Till now, equity money was used for business growth. Now, it will also tap credit lines from banks to raise resources said, Yuvraj Singh said.

Non-Banking Financial Company (NBFC) specializing in senior-secured lending. DMI Finance was set up in 2009 by Yuvraj C Singh and Shivashish Chatterjee, both are former senior executives of Citigroup.

In line with its strategy of building a wider platform, DMI Finance has acquired an equity stake in Alchemist Asset Reconstruction Company. It has also recently received a Housing
Finance Company license from the National Housing Bank.

Dabur India Ltd Chairman Emeritus V C Burman said, "Financial Services is one of the key growth areas identified by the Burman family. This sector is poised for rapid expansion over the next few years and we are ready to participate in this growth with several investments in the sector".

Fixed Income financial services in India is a trillion dollar opportunity growing more than 25 per cent annually.