IFMR Investment to raise Rs 550 crore for financial inclusion space
IFMR Investment Managers Pvt Ltd is aiming to raise a minimum Rs 550 crore from long term investors keen to exposure to the country’s growing inclusive finance space.
The Chennai-based company, wholly owned by IFMR Capital, has unveiled two debt funds and expects domestic institutional investors such as insurance companies, banks and non-banking finance companies to invest in them. About 10% of the issue is kept for private wealth funds.
Investors would get 10–12% return, Vineet Sukumar, chief executive of IFMR Investment told ET. IFMR Capital will put in around 10% as subordinate investment giving adequate risk protection to other investors, he said. The funds carry the option to increase investment up to Rs 850 crore cumulatively.
“The two new funds are a continuation of our efforts to bring more capital and investors to India’s financial inclusion sector,” Sukumar said.
The two funds – one with 10 year maturity and another with five year term — will invest in companies operating in the sectors like microfinance, affordable housing finance, commercial vehicle finance, agri-business finance, as well as in mid-sized corporations. IFMR Investment looks to raise Rs 200 crore through the 10-year debt fund with an option to increase it to Rs 350 crore. It is eyeing Rs 250 crore via the 5-year fund with an option to increase it to Rs 500 crore.