Chennai-based Equitas Finance has raised R100 crore through non-convertible debentures (NCDs) from Franklin Templeton Mutual Fund. The fund will be used to augment long-term resources.
A press release said Franklin Templeton Mutual Fund has subscribed to NCDs on a private placement basis. This is one of the biggest NCD placement by the company since inception in 2011.
S Bhaskar, group chief financial officer, Equitas Finance, said, “Equitas has developed expertise in lending to the largely excluded segments such as used commercial vehicles bought by driver turning owner and also micro SME for the very small and largely informal entrepreneurs.
The trust and support reposed by the marquee institutional investors like Franklin Templeton would go a long way in achieving our growth plans.”
Kshama Fernandes, IFMR Capital CEO, sole arranger for this issue said, “Transactions of this nature will help Equitas and IFMR Capital progress steadily on the path of providing efficient access to finance to a wider base of borrowers across the country.” NBFC arm of Equitas Group, Equitas Finance, runs the used commercial vehicle finance business, loans against property and loans to micro and small enterprises. As of January 31, its net-worth was R616 crore, with a capital adequacy of 38.74%. The company’s gross loan portfolio was Rs 1,538 crore spread across 134 branches in 11 states and one Union territory.