Tuesday, 3 July 2018

Capital First gains after picking up 7% stake in Village Financial Services

The company will acquire 31 lakh equity shares of Rs10 each at a premium of Rs38. Non-banking financial company Capital First rose over 1% after it picked up a 7% stake in Village Financial Services. In a BSE filing, the company clarified that it will acquire 31 lakh equity shares of Rs10 each at a premium of Rs38. The transaction is expected to be completed within 15 days of the agreement and will cost the company a total of Rs15cr. Capital First is a leading Indian financial institution, which specializes in financing MSMEs and consumers. Between 2008 and 2010, the company was mainly in the business of wholesale financing, asset management, and had JVs in Foreign Exchange and retail equity Broking. Subsequently, between 2010 and 2012, the company’s business model was changed to retail, and through a management buyout, it secured backing from US private equity firm Warburg Pincus. Village Financial Services, a public limited company, is registered with the RBI as a non-banking finance company-MFI. This company is engaged in the micro-finance business with an annual turnover of Rs113cr. Capital First Ltd is currently trading at Rs518.35 up by Rs6.2 or 1.21% from its previous closing of Rs512.15 on the BSE.


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