Indian Microfinance Company Equitas Finance Plans IPO, Looks to Raise Up to Rs 1,500 Crore

Friday, April 17, 2015

Chennai-based microfinance company Equitas Finance is said to be planning an initial public offering (IPO) that could mean substantial returns for exiting private equity and venture capital funds. The company that’s 98% owned by a dozen private equity and venture capital funds is looking at raising around Rs 1,200-1,500 crore by selling a stake of up to 25%, said three people involved with the plan.

This will still be lower than the SKS Microfinance IPO in 2010 that raised Rs 1,654 crore. Investors in Equitas include Bellwether Microfinance Fund, Sequoia Capital, Westbridge Capital, Helion Capital, Aquarius Investment Advisors, Sidbi, Aavishkaar Goodwill India Microfinance Development Co and IFC.

“The company is looking at raising some primary money, while some of the existing investors will exit through this issue,” said a banker, who’s part of the discussions. PN Vasudevan, founder and managing director of Equitas Holdings Pvt Ltd, denied that any such move was under way.

Source: The Economic Times (link opens in a new window)

impact investing, microfinance, venture capital