Microfinance lender Satin Creditcare Network Limited (SCNL) today said it plans to raise Rs 5,000 crore in the current fiscal to expand growth.
The company has raised an amount of Rs 25 crore by issuing non-convertible, redeemable shares on preference basis to Karvy Capital, it said in a BSE filing.
In April, it had raised a similar amount by issuing 2.5 crore preference shares on private placement basis to persons belonging to non-promoter group.
“During 2016-17, the company plans to raise a total of Rs 5,000 crore, including both debt and equity,” it said in a release.
SCNL said it has been raising funds through term loans, Tier II capital, NCDs, preference shares, external commercial borrowings, commercial paper and securitisation in keeping with the company’s strategy to diversify resource profile.
The fresh proceeds of Rs 25 crore raised will be used for the company’s growth and working capital requirement, it added.
“This will help us to improve our capital adequacy and further increase our reach,” SCNL Chairman and Managing Director H P Singh said.
In previous fiscal ended March, the company reported a rise of 86 per cent with net profit at Rs 57.3 crore.
The company’s gross loan portfolio as of March 31, 2016 stood at Rs 3,270 crore.
SCNL said it expects the loan portfolio to rise to Rs 5,000 crore and net profit at Rs 100 crore in 2016-17. The company has operations across 16 states in the country.
Shares of SCNL closed 1.94 per cent down at Rs 423 on BSE.