Inditrade Capital to buy 80% stake in Varam Capital for Rs 40 crore
The deal will include direct purchase of stake as well as fresh infusion of capital, the person familiar with the matter said.
The deal will include direct purchase of stake as well as fresh infusion of capital, the person added.
The board of Inditrade Capital has on Monday decided to enter into a non binding letter of intent for acquiring a majority stake in Varam, an NBFC-MFI.
It is learnt that Deloitte is advising Inditrade on the valuation.
Inditrade Group chairman Sudip Bandyopadhyay declined to comment on the development.
The company, which has been into broking business, had started microfinance in April through a subsidiary called Inditrade Microfinance. It now holds 73.4% in the subsidiary.
After the acquisition, both the MFIs will be merged into a single entity.
Inditrade Microfinance has Rs 40 crore loan book and the acquisition will expand the portfolio to Rs 140 crore and provide it a footprint in Chhattisgarh.
The MFI operates in two states -- Maharashtra and Tamil Nadu -- through 17 branches. Varam has 25 branches in Tamil Nadu and Chhattisgarh.
Incorporated in 1994, Inditrade has a strong presence in southern India. Its share price closed at 82.90 on BSE Monday.