India’s Religare Finvest to sell 5-pct stake to PE firm

NEW DELHI, Jan 3 (AsiaPulse) – Private equity firm Jacob
Ballas may acquire a five per cent stake in India-based
Religare Finvest, a non-banking financial services arm of
Religare Enterprises, for about Rs 200 crore (US$37 million). The deal would value the company, an NBFC focussed on the
MSME segment, at close to Rs 4,000 crore and would be its
second private equity investment in a quick succession.

Earlier, Avigo Capital had invested Rs 150 crore in Religare

While the company officials were not available for comments,
sources close to the development said that the deal could be
concluded shortly.

Religare Finvest provides debt capital to MSMEs (micro,
small and medium enterprises) in form of loans against
property, working capital loans, loans against plant and
machinery, vehicles and construction equipments and loan
against marketable securities, among others.

The company has more than 25,000 MSME accounts and its loan
book stood at about Rs 11,400 crore as on September 30.

The PE fund is expected to help the company meet its growing
capital requirements.

The deal comes at a time when various regulatory changes are
taking place in the non-banking financial sector.