L&T Finance Acquires 26% Stake in Grameen Capital India
Tuesday, July 14, 2015
L&T Finance Ltd has acquired 26% stake in Grameen Capital India Ltd, which focuses on providing capital market access to social enterprises, the latter said in a press statement on Tuesday.
Grameen did not disclose the amount invested by L&T Finance for acquiring the stake. L&T Finance, a non-banking finance company (NBFC), is a wholly-owned subsidiary of L&T Finance Holdings Ltd.
The organisation, which has been focusing on impact advisory space for the last seven years and has helped raise over $150 million in equity and debt capital for social enterprises, is now planning to launch its NBFC to lend to social enterprises.
“The vision of Grameen Capital is to create a ‘capital with a conscience ecosystem’, which means double bottom-line impact investing, creating the right climate for it,” said Royston Braganza, chief executive officer at Gramen Capital.
The NBFC, which has an equity base of $10 million, will lend directly as well as use its balance sheet to syndicate and create larger debt products for the impact sector. The NBFC is expected to start lending in a few weeks, he said.