Equitas gets approval for FDI investment of Rs 325 cr

Prolonged financial stress in the economy has a direct impact on commercial vehicle finance market

Equitas Holdings Pvt Ltd, a diversified Non-Banking Finance Company with operations in microfinance, has received approval from the central government to bring in Foreign Direct Investment (FDI) of Rs 325 crore.

The approval has been sought by Equitas Holdings Pvt Ltd for downstream investment in its wholly-owned subsidiaries by its existing and new foreign shareholders. With the infusion of Rs 325 crore, the foreign equity in the company would increase from 91.30 per cent to 93.12 per cent.

It may be noted that the company had raised funds from foreign investors earlier this year and also during the past few years. According to information available, the company had raised Rs 79.93 crore in May, 2014.

It has also raised around Rs 230 crore through a similar approval in 2012 and Rs 222.8 crore during 2013, according to reports.

The investment firm has raised its sixth round of institutional capital of Rs 198 crore from the UK government's Development Finance Institution, Netherland's development finance company FMO and the company's promoters, in December, last year.

The company operates in microfinance, micro small and medium enterprises, and housing finance sectors.

According to a company record in September, 2014, it has reached a loan outstanding at the group level of Rs 3,260 crore during the half year end. The prolonged financial stress in the economy has a direct impact on the commercial vehicle finance market.

“We have, however, managed to hold the NPAs at the same level from April 2014 through to September 2014,” says the company.