Muthoot Microfin plans to raise $50 m via PE

Muthoot Microfin (MML), a subsidiary of Muthoot Fincorp, intends to raise $50 million equity from PE investors for its micro finance business. The company, in December last year, had raised $20 million from Chicago-based PE firm Creation Investment LLC.

Further, to fund its expansion and to maintain the growth momentum, MML plans to raise ₹325 crore of fresh equity. The mop-up would be utilised to open new branches, to expand operations, to leverage, and to lend to more micro finance customers, Sadaf Sayeed, CEO, Muthoot Microfin, said.

Quoting MFIN data, he said, MML is the fourth-largest NBFC-MFI in the country and one of the fastest-growing NBFC-MFI, registering a growth of 158 per cent in the last fiscal. MML continues to enjoy A- Stable long-term debt rating from CRISIL and India Ratings. The company, he said, had raised ₹75 crore in September through an NCD issue on private placement basis. With this, the total fund raised through debentures has reached ₹280 crore.

For FY2017-18, MML has already raised ₹1,058 crore. The funding mix includes ₹75 crore of listed NCDs, ₹398 crore of term loans from public sector and private sector banks, and ₹585 crore of direct assignment of priority sector portfolio with various banks. MML plan to disburse loans worth ₹3,500 crore to joint liability group this fiscal. Of this, it had already disbursed ₹1,250 crore of JLG loans.

Thomas Muthoot, Executive Director of the Group, said with Muthoot Microfin the company has created a platform of more than 1.5 million households in 16 States and union territories. Future capital will help expand these services to more households.