Bandhan Plans To Raise Rs 100 Cr PE

MFI-Bandhan is planning to raise Rs.100 Cr through PE to fund its credit growth and expansion plans.

Bandhan Fianncial Services Private Limited (BFSPL) was founded in 2002. It provides micro loans to women and families, small businesses, as well as cottage industries and other SMEs.

It has appointed Intellecap as an advisor and to find a potential partner for the deal.

Transaction Reference: ET

In 2006, Bandhan acquired Ganga Niryat Pvt Ltd, an NBFC registered in Kolkata.

As on June 2010, it operates in 17 states in India with 1,550 branches and has a total outstanding loan disbursement of Rs.1,589 Cr. Total number of members of Bandhan are 2.7 Mn.

Last year in December, SIDBI has acquired 10.92% stake in Bandhan for $10.7 Mn valuing Bandhan close to $100 Mn. Post deal, SIDBI’s stake in Bandhan went up to 12.23%. Earlier in Oct’08, SIDBI had bought 1.31% in Bandhan through conversion of $0.21 Mn loan into equity.

For past few months, many MFI's have raised funds to fund their credit growth. SKS Microfinance raised $358 Mn through IPO after pricing the issue at Rs.985 per share; Swadhaar FinServe Pvt Ltd also raised Rs.27.5 Cr from Microvest and from its existing investors and Fusion Microfinance raised Rs.4.5 Cr From Incofin Investment and Grameen Koota has planned to raise Rs.100 Cr.

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