Microfinance provider Satin Creditcare has raised Rs 250 crore through Qualified Institutional Placement (QIP), the company announced on Thursday. Launched on December 14, the issue received a ‘good response’ from institutional investors including ICICI Prudential Life Insurance, Bandhan Mutual Fund, Bajaj Allianz Life Insurance etc., and was oversubscribed 1.9 times, the company said.
Satin Creditcare had issued and allotted 1,08,36,584 equity shares of face value of Rs 10 each to eligible Qualified Institutional Buyers (QIB) at an issue price of Rs 230.70 per equity share (including a premium of Rs. 220.70 per equity share). This included a discount of Rs 12.11 per equity share, that is, 4.99 per cent on the floor price of Rs 242.81, as determined under Regulation 176(1) of SEBI ICDR Regulations aggregating to Rs 250 crores, according to the issue.
“The company already has a healthy capital adequacy ratio, and this issue will further bolster the balance sheet, underscoring Satin’s growth-oriented performance coupled with strong asset quality,” he said.
Satin Creditcare is present in 24 states & union territories and 96,000 villages and caters to the financially under-served community. It offers a bouquet of financial products in the non‐MFI segment, comprising loans to MSMEs, affordable housing loans, and business correspondent services.
In April 2017, the company incorporated a wholly owned housing finance subsidiary Satin Housing Finance Limited for loans to the affordable housing segment. In January 2019, the company received a separate NBFC license to commence MSME business through Satin Finserv. As of September 30, 2023, Satin Creditcare had 1,335 branches and 32.1 lakh clients.
India’s microfinance sector grew 17.9 per cent year-on-year (YoY) in gross loan portfolio as of March 2023 to Rs 3.37 lakh crore from Rs 2.86 lakh crore as of March 20222, according to a report by credit bureau Crif High Mark, FE Aspire had reported. In FY23, NBFC-MFIs dominated the market with a portfolio share of 37.3 per cent amounting to Rs 1.26 lakh crore followed by banks with 33.1 per cent share worth Rs 1.11 lakh crore and small finance banks with 16.6 per cent share.
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