Essel Finance to acquire Rs272 crore loan portfolio of Motilal Oswal-backed Intec Capital
Essel Finance proposes to acquire the loan portfolio of Rs272 crore along with bank borrowings for a consideration of equity shares in Motilal Oswal-backed Intec Capital
Mumbai: Essel Finance Business Loans (EFBL), the non-banking financial company (NBFC) arm of Essel Finance on Tuesday said that it is acquiring the loan portfolio of Rs272 crore of Motilal Oswal Private Equity backed lender Intec Capital Ltd.
“EFBL proposes to acquire the portfolio of Rs272 crore along with bank borrowings for a consideration of equity shares in the company,” the statement said. The transaction is subject to regulatory approvals.
Intec Capital, an NBFC, is engaged in the business of providing loans for acquisition of machinery, loans against collateral and loans for business functioning. Motilal Oswal Private Equity owns around 33% stake in Intec Capital.
Intec has a pan-India geographic reach serving small and medium enterprises across sectors, covering more than 137 SME clusters of the country.
“Post this acquisition we will cross loan portfolio of Rs500 crore and a large pan-India customer base. The banking relationship of loan portfolio will help us in faster growth,” said Amitabh Chaturvedi, managing director, Essel Finance.
Shares of Intec Capital closed at Rs45.95, down 3.87% on BSE, while the benchmark Sensex closed at 31,710.99 points, down 1.13%.
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