New Delhi: Non-banking finance company Capri Global Capital Ltd on Monday said it will raise Rs800 crore through non-convertible debentures (NCDs) and commercial papers.
In a statement to stock exchanges, the company said its board on 8 October approved raising Rs500 crore through NCDs and Rs300 crore through commercial papers.
The money will be used for lending to the micro, small and medium enterprises, downstream investments, new financial services and for general corporate purposes, it said.
“Recent cuts in interest rates by RBI have led to moderation in bond yields, which is expected to benefit NBFCs by way of 100 basis point cut in cost of borrowing,” Capri Global Capital director Rajesh Sharma said in the statement.
While credit off-take has been subdued, bank lending to NBFCs in July hit a two-year high of over 15.5% year-on-year, while bank lending to corporates grew at less than 1% for the fourth successive month, Sharma said.
The Capri Global board has also decided to split its equity shares from face value of Rs10 each to Rs2 each to increase liquidity of its stock and increase its shareholders base.
As on 31 March, Capri Global had a total debt of Rs114 crore while the networth is around Rs1,086 crore, including equity of Rs35 crore.
In 2015-16, it disbursed Rs700 crore loans. The company’s subsidiary Capri Global Housing Finance has recently received licence from the RBI for housing finance company and will start business soon.
Capri Global Capital is focused on the priority sector in the small and medium enterprise lending space, and provides loans for purchase of machinery and equipment and working capital.
In wholesale lending, it offers specialized solutions to Indian companies to grow their businesses with initial funding and mezzanine financing.
It provides financial services in Ahmedabad, Bengaluru, Delhi, Faridabad, Gurgaon, Ludhiana, Mumbai, Nashik, Noida, Pune, Rajkot, Surat, Vadodara and Vapi. The company has previously raised capital from investors such as Wellington Management Company LLP, Morgan Stanley, Fidelity and Goldman Sachs.