Capital First raises Rs 178cr via pref shares to WarburgPincus

Non-banking lender Capital First today said it will raise Rs 178 crore in core capital through a preferential allotment of shares to its promoter, global private equity major Warburg Pincus, and HDFC Standard Life Insurance.
"This incremental capital will position Capital First to continue funding its future growth plans," its chairman and managing director V Vaidyanathan said, adding this is subject to shareholder approval.
The company, earlier known as Future Capital, before being bought over by Warburg Pincus, will issue 83.6 lakh shares to raise Rs 128 crore to Cloverdell Investment, an affiliate of Warburg Pincus, and 32.5 lakh shares for Rs 50 crore to HDFC Standard Life, it said.

The promoter group already owns 71.99 per cent in the company. Warburg Pincus had first acquired a majority share in the company from the Future Group in 2012 and then raised it to the current level via an open offer.
The transaction will happen at Rs 153 per share, it added. The company share was trading at Rs 147, up by 1.48 per cent on the BSE at 1410 hrs.
Vaidyanathan said after the transaction, the core tier-I capital adequacy ratio of the company will go up to 24 per cent from the 21.35 per cent as on December 2013.

Capital First is a non-deposit taking non-bank finance company which focuses on lending to micro and small businesses and also for consumption.