SEWA's NBFC arm to raise Rs 200 crore

Unlike SKS Microfinance, which recently went public, Ananya Finance for Inclusive Growth (AFIG), the Ahmedabad-based Self Employed Women’s Association (SEWA)-promoted non-banking finance company (NBFC), is looking at raising around Rs 200 crore through private placement.

AFIG, floated by the Friends of Women’s World Banking (FWWB), an arm of SEWA, is in advanced talks with some international institutional investors like IFC, the Women’s World Bank and the Netherlands-based Triodos Bank for raising funds.

“While we have a share capital of Rs 3 crore, we intend to raise around Rs 200 crore from domestic as well as international social institutional investors,” said Vijayalakshmi Das, chief executive officer of FWWB. Das is also the managing director of AFIG.

“Such social equity investors will have more patience and appreciate our work and not expect immediate and high returns.”

Apart from scouting for domestic social institutional investors, Das said they were in advanced stages of negotiations with IFC, the Women’s World Bank and Triodos Bank.

According to Das, AFIG is looking to raise around 55-60 per cent through domestic private placement and the rest from international investors.

On the option of going public, Das said, “More than going for an initial public offer, it makes more sense for us to source funds through social investors, who will relate to and support us in our endeavour and not put pressure for quick returns. Hence, we do not have any plan to go public.”

FWWB used to fund microfinance institutions (MFIs), but on a low-key basis. So, it set up AFIG. “We felt Indian poor women needed more access to finance and, therefore, we decided to get directly involved in microfinance by setting up an NBFC,” said Das.

The NBFC supports around 140 MFIs across the country. AFIG is looking at a micro finance portfolio of over Rs 500 crore by 2012.