IFMR Capital forms overseas alternate fund, JV for global expansion

IFMR Capital, a debt capital platform, has also rebranded itself as Northern Are Capital to reflect plans for expanding the footprint, including a joint venture abroad and overseas alternate investment fund.    

Kshama Fernandes, Chief executive, IFMR Capital, said the company has signed a memorandum of understanding (MoU) with a large global bank and has received anchor investor interest in the overseas alternate investment fund.

According to ICRA Ratings as on December 31, 2017, the company’s assets under management (AUM) stood at Rs 31.14 billion. Out of this, 65 per cent were advancing to NBFCs and corporates (including DO portfolio).

Its investments in debt instruments (including NBFCs and alternative investment funds) were about 19 per cent, 11 per cent was deployed to subordinated tranches of retail loan pools and five per cent were guarantees.

IFMR Capital plans to enter into strategic alliances with domestic and international institutions for a long term. Debt market outfit is in process of forming its first overseas joint venture which would help to use experience in Indian markets onto a global platform, Fernandes said.

IFMR Capital has raised equity of about Rs 3.10 billion during FY2014-FY2018 (till date) from IFMR Holdings Private Limited (IFHPL) and other investors. IFHPL holds about 47.88% equity in the company. The other investors were Leapfrog Financial Inclusion India II (28.02 per cent), FIL Capital Investments (Mauritius) Ltd (14.20 per cent) and Singapore branch of Standard Chartered Bank (9.9 per cent) on a fully diluted basis, as on January 2018.

In FY2017, IFMR Capital reported a consolidated net profit of Rs 638 million on a total managed asset base of Rs. 30.37 billion as a compared consolidated net profit of Rs 600 million on a total managed asset base of Rs 18.98 billion for FY2016.

In H1 FY2018, IFMR Capital reported a consolidated net profit of Rs 504 million on a total managed asset base of Rs 34.38 billion.