Indianivesh to invest Rs 25 crore in microlender M Power

Indianivesh Capital today said it will be investing Rs 25.7 crore in Maharashtra-based microlender M Power Micro Finance to drive expansion plans.
Indianivesh, which has interests in the brokerage industry, will invest Rs 8 crore immediately and pay Rs 7.7 crore to acquire shares from individual shareholders in the 2010-incorporated microlender, a statement issued here said.
It will invest a further Rs 10 crore in the company in up to a year, the statement said.
"M Power is one of the most efficient MFI with superior productivity and return metrics in the Industry," Indianivesh's director Rajesh Nuwal said, adding that confidence in the management team was also a big draw.

The microlender's founder and chief executive K M Vishwanathan said the company, which is bracing the impact of the noteban, is now embarking on an expansion plan to grow branches and loan book.
"This fund infusion will support the expansion plans of the company. The fund infusion in two phases will enable calibrated expansion and balance the return metrics," he said.

AU Financiers which is transitioning to a Small Finance Bank (SFB) continues to stay invested in M Power, the statement said.
IIFL Investment Managers' corporate advisory team was the exclusive financial advisor to M Power on the transaction.
M Power has 27 branches in Gujarat, Maharashtra and Rajasthan at present and had a book of Rs 130 crore in September 2016. It has a workforce of 267 employees.