The Hindu Business Line : Share Microfin to infuse Rs 250 cr thru equity

The Hyderabad-based microfinance institution has short-listed eight venture capitalists and the deal would be closed in about 30 days with one of them, Mr Udai Kumar, Chairman and Managing Director, Share Microfin Ltd, told Business Line here .

“The investor could be an Indian firm,” Mr Kumar said while refraining to give further details.

In May 2007, international investment group Legatum had made an equity investment of Rs 100 crore ($25 million) in Share and currently holds 65 per cent of equity. While the promoters hold 30 per cent, Avishkaar Goodwell has 5 per cent stake in the company.

“We have estimated that Rs 650 crore would be required over next three/four years to fund our expansion. Out of this Rs 250 crore would be mobilised through equity infusion with in a month. We will go for two more rounds of equity infusion later,” Mr Kumar said.

Share has a net worth of Rs 150 crore with a capital base of Rs 45 crore at present with total disbursals of Rs 4,310 crore.

Share targets to expand its outreach from current 1.7 million members to 15 million by 2012-13. “There will be corresponding increase in number of our staff from 4,380 to 15,000,” Mr Kumar said.

The company, which operates in 16 States with 716 branches, has recently forayed into health insurance by launching a health insurance plan in association with United India Insurance.

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