Equitas to raise Rs 300-400 cr

Company says one new investor every year would be roped in for next 3 years

Micro financier Equitas has said it would raise Rs 300-400 crore in the next two-three years to achieve its target of 35 per cent growth in portfolio for the next three years.

“The funds would be deployed for growing the portfolio. As of now, we are fully capitalised. Maybe the same time next year we may raise the money,” said PN Vasudevan, managing director of Equitas Holdings Pvt Ltd.

Speaking to Business Standard, Vasudevan said, “I wanted to create a company, like L&T, ICICI, where there is no single owner and the company is run by professionals”. At present, a total 14 investors hold 98 per cent share in the company, he said.

"Every year one new investor will come into the company,"Vasudevan said.

The company in November last year had raised Rs 325 crore from four overseas investors by diluting 40 per cent stake.

Vasudevan, who founded the company in 2007 with the capital borrowed from former chairman of Murugappa group MA Alagappan, holds two per cent interest in the company. IFC is the lead stakeholder with 13 per cent interest.

Netherlands Development Finance Company (FMO), German Investment Development Corporation (DEG), International Finance Corporation (IFC), Commonwealth Development Corporation (CDC) owned by the British government, and British alternative investment management company Creation Investments Capital Management are invested in the company.

Equitas Holdings, which operates Equitas Microfinance, Equitas Finance (for MSMEs) and Equitas Housing Finance,  has a total loan outstanding of Rs 3,800 crore, including Rs 2,000 crore from microfinance lending, and a customer base of 2.5 million.Equitas currently operate in 11 states, with about 501 branches.