ADB-backed Mortgage Corp may need new investors to grow

With restrictions on shareholders having controlling stake, Asian Development Bank (ADB)-backed India Mortgage Guarantee Corporation (IMGC) may need to raise equity from new investors to meet its growth plans and maintain adequate capitalisation levels.

Rating agency ICRA reaffirmed the issuer rating for IMCG at ‘AA’, but it revised the outlook from ‘stable’ to ‘negative’. The revision factors in lower-than-anticipated growth in the company’s scale of operations, which impacts its profitability.

IMGC is the only mortgage guarantee company (MGC) in India. It is sponsored by Genworth Financial Mauritius Holdings — a part of Genworth Financial, Inc. The other shareholders are National Housing Bank,