The Hindu Business Line : Dubai co Legatum invests Rs 100 cr in SHARE Microfin

MR UDAIA KUMAR, founder & Chairman and Managing Director, SHARE Microfin Ltd, and Mr Mark Stoleson, President, Legatum, at a press conference in Mumbai on Tuesday. — Paul Noronha

Mumbai May 15 Legatum, a Dubai-based private firm with investments in international financial markets, has announced an investment of Rs 100 crore ($25 million) to acquire a majority stake in Hyderabad-based micro finance institution, SHARE Microfin Ltd (SHARE). The investment will help SHARE reach an additional six million customers over the next five years.

Neither company elaborated on the stake acquired and the price at which the shares were picked up.

Apart from Legatum, Aavishkaar Goodwell India too has invested $2 million in SHARE.

"We will now expand our presence to 12 States and have a loan portfolio of $600 million," said Mr Udaia Kumar, Managing Director, SHARE Microfin.

Based in Hyderabad, SHARE has over one million clients and $95 million in outstanding loans. SHARE offers financial and support services to rural women through a network of 2,300-plus staff spread across 312 branches in five States.

Commenting on the investment, Mr Mark Stoleson, President of Legatum, said, "With over a million clients across 8,000 villages, SHARE has established itself as India's leading micro finance institution. Along with other investors, including the Aavishkaar Goodwell India Microfinance Development Company, we will seek to support SHARE in setting new standards for best practices and governance, while providing high quality financial services to unbanked India."

Mr Kumar said the company is likely to take a year to issue bonds while the IPO will take another 3-4 years.

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