BSFL Gets Rs 800 Cr Funding From Investors, Banks
Bhartiya Samruddhi Finance Limited (BSFL) has received funding of Rs.800 Cr from nine banks and other private institutional investors.
It has received Rs.500-600 Cr from commercial banks and Rs.100 Cr from International Finance Corporation (IFC), Matrix Partners, Axis Bank Ltd, Hivos-Triodos Fund and Lok Capital LLC. SIDBI and HDFC Bank will give Rs.75 Cr and Rs.25 Cr, respectively, as preference capital.
With this investment, BSFL will be able to raise its performing loan portfolio to Rs.1,200 Cr from current Rs.600 Cr.
Five equity investors' combined stake in the company will increase to 58% from 43%, while the stake of Basics Ltd, the holding company of Basix group in BSFL will come down to 20% from 35%.
Transaction Reference: Livemint
Hyderabad-based MFI, BFSL is promoted by Vijay Mahajan's BASIX group. It has over a 3.5 Mn customers with a staff of over 10,000 people. It works in 17 states, 223 districts and over 39,251 villages.
BSFL was on the verge of collapsing under the burden of bad loans. With borrowers in Andhra Pradesh refusing to repay, bad loans were growing and threatening to wipe out its entire net worth and reserves. As of 30 June, BSFL's net worth was Rs.128 Cr, down from Rs. 230 Cr in September last year due to accumulated bad loans of Rs.450 Cr.
In Apr'09, BSFL had raised Series-B funding of Rs 54.12 Cr ($12 Mn) from Lok Capital LLC, Aavishkaar Goodwell India Microfinance Development Company and SIDBI, for 11% stake.
Last year, it had raised Rs.75 Cr through debt route (through the issue of NCDs).
In July, the government unveiled a draft Bill on microfinance regulation that accorded sole regulatory power to the RBI.
Recently, Mumbai based MFI - Svasti Microfinance Pvt Ltd raised Rs 4.5 Cr from BlueOrchard PE Fund in it's second round of funding to expand its branch operations and to develop innovative loan products to service the entrepreneurial low income population in Mumbai.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 02/03/12 | Bhartiya Samruddhi - The Swiss Agency | Private Equity | The Swiss Agency For Development Cooperation | 7.71 |
| 08/08/11 | Bhartiya Samruddhi Finance - IFC, Matrix Partners, Axis Bank, others | Private Equity | Small Industries Development Bank of India | 177.94 |
| 05/04/10 | Bhartiya Samruddhi Finance - Matrix, Triodos, Lok Cap | Venture Capital | Matrix Partners India Investment Holdings LLC | 26.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 07/05/12 | Private Equity | International Finance Corporation | Ujjivan Financial Services Private Limited | 9.35 | Planned |
| 07/05/12 | Private Equity | International Finance Corporation | Equitas Holdings Private Limited (Formerly Equitas Micro Finance India Private Limited) | 18.70 | Planned |
| 18/04/12 | Private Equity | Looking For | Janalakshmi Financial Services Private Limited | 9.65 | Planned |
| 16/04/12 | M&A | Basix Group | Unknown Asset | - | Planned |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Lok Capital LLC | 22 | Micro Finance | www.lokcapital.com | Priyanshu GuptaA JainDonald Macinnes PeckRajiv B LallVishal MehtaQuirine Van voorst |
| Matrix Partners India Investment Holdings LLC | Retail BFSI Food & Beverage Hospitality Real Estate |
http://www.matrixpartners.com/ | Rustom BatlivalaSatish ChaluvadiAmit KapoorRishi Omprakash NavaniAshay ShahManas TandonAvnish Sarabjit BajajSandeep Kumar SinghVikram VaidyanathanVarun SinghalVarun SinghalShyam P | |
| Stichting Hivos-Triodos Fonds | BFSI | www.triodos.com | ||
| International Finance Corporation | Micro Finance Infrastructure Energy |
www.ifc.org | Anup Kumar Agarwal | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Axis Bank Limited | Life Insurance Corporation Of India. The New India Assurance Co.Limited Administrator Of The Specified Undertaking Of The Unit Trust Of India - Uti 1 The Oriental Insurance Co. Limited General Insurance Corporation Of India National Insurance Company Limited |
Trishul 3rd Flr, Opp.Samartheshwar Temple, Law Garden Ellisbridge |
HDFC Bank Limited State Bank of India Union Bank Of India Indian Bank UCO Bank Limited Vijaya Bank |
www.axisbank.com |
| HDFC Bank Limited | Housing Development Finance Corporation Limited Housing Development Finance Corporation Limited |
HDFC Bank House, Senapati Bapat Marg, Lower Parel (West) |
Axis Bank Limited State Bank of India Dhanlaxmi Bank Limited IndusInd Bank Limited Kotak Mahindra Bank Limited Indian Bank SREI Equipment Finance Private Limited |
www.hdfcbank.com |
| Small Industries Development Bank of India | SIDBI Tower, 15, Ashok Marg, Lucknow-226 001 | www.sidbi.in | ||
| Bhartiya Samruddhi Finance Limited | Bhartiya Samruddhi Investments and Consulting Services Limited | D9,First Floor, Greater Khailash Enclave I |
SKS Microfinance Limited Equitas Holdings Private Limited (Formerly Equitas Micro Finance India Private Limited) Spandana Sphoorty Financial Limited Share Microfin Limited Bandhan Financial Services Private Limited Trident Microfin Private Limited ( Annapurna Financial Services Private Limited) |
www.basixindia.com |
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