India: Bandhan Microfinance Looking to Raise Rs 100 Crore – IPO After 2 Years

Sep 2010
India, September, 01 2010 - Kolkotta based Bandhan Microfinance is said to be looking for a private equity investor who can infuse upto Rs.100 crore into the company, a top company official said to media last week.

Bandhan Microfinance is said to be in talks with atleast three foreign institutions for the investment. Speaking to the media – Mr Chandra Shekhar Ghosh, founder and chief executive officer of Bandhan Microfinance said that they are indeed looking for a private investor and hope to finalize the investment by December 2010.

Currently SIDBI is the only institutional investor in Bandhan. It had picked up a 11 percent stake for Rs.50 crore in 2009.Bandhan Microfinance is looking for an infusion of Rs.100 crore by december from it’s new investors.

Bandhan Microfinance, which currently has a capital adequacy ratio (CAR) of 18 percent, is targeting 10 million clients by 2015.The infusion of fresh capital is necessary for it’s expansion plans, said Mr Ghosh.

Bandhan is currently operating in 17 states mainly in the eastern and north eastern part of the country  and has network of more than 1,500 branches. The company expects disbursement to be around Rs 18,000 crore in 2015 from Rs 6,000 crore that it is currently disbursing.

Bandhan also recently tied up with Western Union Money Transfer Services to offer services to it’s clients.

On being asked about it’s IPO plans, Mr Chandra Shekhar Ghosh said they have no plans of doing an Initial Public Offering for the next two years after which they might consider it.


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