DMI Finance has acquired 16% stake in Alchemist Asset Reconstruction Company. The terms of the transaction were not disclosed, however according to a report on ET, the deal size is estimated to be about R32Cr.

Alchemist ARC is in the business since 2002. It claims to have over 100 years of cumulative experience in the banking domain across international and domestic banks such as Citigroup, SBI, ICICI, Dhanalaxmi, and Bank of Tokyo- Mitsubishi.

DMI Finance was founded in 2009 by former Citigroup employees Shivashish Chatterjee and Yuvraj C Singh. DMI Finance has a corpus of about R500Cr, of which it has deployed over R400Cr. Currently it is in talks with both foreign and domestic investors to raise another R500Cr over the next 12-14 months.

Besides corporate lending, its core business area, DMI Finance is also involved in securitisation and distribution of fixed income product, distressed asset financing and retail lending.

In September'11, DMI Finance invested R30Cr in Svenska Design Hotelsfor setting up small format luxury hotels in Tier 2 & 3 cities.

The local distressed asset market is worth Rs 200,000cr, which is almost 8% of the GDP, with an annual accumulation of nearly Rs 20,000 cr. The oldest player and market leader is ARCIL- floated by SBI, IDBI, ICICI Bank and Punjab National Bank in 2003.

The other licence holders are UTI- ASREC, International Asset Reconstruction Company and Asset Care Enterprise among others.

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