Share Microfin plans to raise Rs 2,200 cr to fund projects

Written by Kavitha Venkatraman | Hyderabad | Updated: May 4 2009, 04:44am hrs
Share Microfin Ltd, one of the early entrants in the micro finance industry, is planning to raise Rs 2,200 crore during the current fiscal to fund its growth plans. The money will be mobilised through cash credits, term loans from banks and other financial institutions, securitisation deals and non-convertible debenture (NCDs) issue.

According to M Udaia Kumar, managing director of the company, nearly Rs 1,760 crore of the proposal amount will come through on balance sheet funding which will include term loans, cash credits and NCDs and the balance 20% will be done in the form of portfolio buyouts and securitisation of un-encumbered portfolio with some of the banks and financial institutions. Infact, on a test basis, as part of the on balance sheet fund raising plans, Share is looking at coming out with an NCD issue on a private placement basis. The size of the issue will be anywhere between Rs 150 crore to Rs 200 crore and it should hit the market during the first quarter of the current financial year, he said adding the company is already in talks with a couple of banks for the purpose.

As part of the off balance sheet funding, the company will be doing portfolio buyouts to the tune of Rs 350 crore and securitisation deals worth Rs 90 crore, he explained. Share Microfin, during the current financial year is targeting disbursements of about Rs 4,000 crore as against Rs 2,064 crore disbursed last year. The outstanding loans book should also touch Rs 2,340 crore during the year ended March 2010 as against Rs 1,206 crore during March 31, 2009.

Udaia Kumar said the company is planning to launch health insurance as a full-fledged product this financial year.