Equitas rasies Rs 100 cr from Franklin Templeton Mutual Fund through NCD

Fund raising will augment long term resources

Equitas Finance Private Limited has issued Non-Convertible Debentures (NCDs) aggregating to Rs 100 crore. To augment the long term resources and to diversify the funding sources, Franklin Templeton Mutual Fund has subscribed to the said NCDs on a Private Placement basis. This is one of the biggest NCD placement by the company since inception in 2011, claims the company.

S Bhaskar, Group Chief Financial officer said that Equitas has developed expertise in lending to the largely excluded segments such as used Commercial Vehicles being bought by driver turning owner and also Micro SME for the very small and largely informal entrepreneurs .

"The trust & support reposed by the marquee institutional investors like Franklin Templeton would go a long way in achieving our growth plans," he said.

Kshama Fernandes, chief executive officer, IFMR Capital, sole arranger for this issue said, "Franklin Templeton's investment in the NCDs issued by Equitas Finance is a great reinforcement of the potential of the sector and the company. Transactions of this nature will help Equitas and IFMR Capital progress surely and steadily on the path of providing efficient access to finance to a wider base of borowers across the country.

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. borrowers across the country."

The company raised first round of capital of Rs 6 crore within three months of operations in early 2008. The company started operations in December 2007 with four branches.

In Fiscal 2009, the company raised Rs 99 crore equity, followed by Rs 138 crore in Fiscal 2010, Rs 140 crore in Fiscal 2013, Rs 198 crore in Fiscal 2014 and Rs 325 crore in Fiscal 2015.

Equitas currently operate in 11 states, with about 501 branches. Vasudevan claims delinquency level of the company is less than 1%.