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Oman India Joint Investment Fund (OIJIF) II has picked up a 9.90 per cent stake in Punjab-based Capital Small Finance Bank for ₹84 crore. OIJIF is a mid-market private equity firm, co-sponsored by the State Bank of India (SBI) and State General Reserve Fund of Oman (SGRF).
The Capital SFB deal marks OIJIF’s fifth transaction from the second fund, said Edelweiss Financial Services, which was the sole financial advisor to the bank for the transaction.
Srinath S, CEO, Oman India Joint Investment Fund II, said: “Capital SFB has all the right ingredients (a low-cost liability franchise, low GNPAs, high CASA ratio, diversified product profile, and a stable management team) required to be successful in the Indian banking space.”
Current round
According to the statement, as part of the capital-raise round, Bengaluru-based mid-market private equity fund Amicus Capital Private Equity and Amicus Capital Partners India Fund invested ₹38 crore in the bank in June 2019 and ₹5 crore now, taking the total capital raise of the bank to ₹134 crore in the current round.
Pi Ventures LLP, an existing investor also participated in the current round. The bank also has HDFC Life, ICICI Prudential Life, and Small Industries Development Bank of India (SIDBI) as its investors, the statement added.
Sarvjit Singh Samra, Founder and Managing Director, Capital Small Finance Bank, said: “The current round of capital raise will help the bank deepen its penetration in Punjab and expand rapidly into Haryana, Rajasthan and NCT Delhi with a significant focus on MSME loans.…The fund-raise enables the bank to achieve its growth targets while remaining well-capitalised in the near term.”
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