M&A

M&A

Trucap Finance buys out Rs.65-Cr retail MSME book of EZ Capital

Business Standard  

MSME-focused shadow lender Trucap Finance has bought out the retail MSME book of the Jalandhar-based EZ Capital in a share swap deal. The deal with EZ Capital involves taking over the INR 65-crore MSME retail book along with over 100 people and 10 branches in Punjab and Delhi-NCR. The promoters of EZ Capital will get 931 shares of Trucap for every 711 shares of EZ. EZ will own 17% of Trucap. Mumbai-headquartered Trucap has a loan book of INR 500 crore size, spread across unsecured small-ticket MSME business loans (INR 270 crore) and INR 230 crore of gold loans. Its branches are spread across Maharashtra, Delhi-NCR, MP, Goa, Gujarat, and Rajasthan.