Comments
Kolkata-based NBFC-MFI, Village Financial Services (VFSL) is mulling initial public offering.
The microfinance institution is wholly owned by the promoter, Kuldip Maity, who is also the MD and CEO.
When contacted, Kuldip Maity confirmed that the company was ‘exploring’ the IPO route for funding its future growth. He, however, reminded that the plans are still on drawing board stage.
“The IPO market looks good at present with a number of companies, particularly those from the financial sector, tapping the market,” Maity told BusinessLine .
The MFI, which commenced operations in 2005-06, is in talks with merchant bankers to understand the valuation and other finer details before firming up its plans for the IPO.
PE routeEarlier this fiscal, VFSL was looking to tap the private equity route to raise funds to the tune of ₹40 crore.
“Considering the market situation and success of other IPOs we dropped the plan to rope in PE investment and are looking at the capital market instead,” he said. “Maity, however, refused to divulge details regarding the amount of stake to be divested and the timing of the IPO. “It will all depend on the valuation,” the CEO said.
VFSL has been growing at over 60 per cent on a y-o-y basis. The total disbursements stand at close to ₹500 crore as on September 30, 2017. It has raised close to ₹300 crore as debt from banks and NBFCs for funding its growthso far this fiscal.
According to Maity, it would need equity capital worth ₹200 crore over the next three years for maintaining an annual growth rate of 60-70 per cent. VFSL, Maity claimed, has a repayment rate of 99.56 per cent and a net spread of 2 per cent.
The microfinance institution, which primarily operates in West Bengal, Bihar, Jharkhand, Odisha, Assam, Tripura, Sikkim and Uttarakhand, plans to expand in newer geographies, including Chhattisgarh and Madhya Pradesh, he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.