Private Equity Fund Investments
Microfinance firm Belstar to raise Rs.350-Cr led by Affirma Capital
Advisor Disclosure BSE Announcement
Chennai-based Belstar Microfinance is to raise INR 350 crore in primary equity capital in a round led by Affirma Capital (which is to invest INR 300 crore). Belstar's publicly listed parent firm Muthoot Finance and existing investor Maj Invest also participated. InteQuant Advisors was the sole financial advisor to the deal, which will also feature a INR 20 crore secondary offer for sale by the target company's promoters. Post completion of the deal (expected in 3 months), Affirma (via its units Augusta Investments IV PTE Ltd and Arum Holdings Limited) will hold a 18.45% stake in Belstar, while Maj Invest (via MAJ Invest Financial Inclusion Fund II K/S) will hold 10.02%. Muthoot Finance will hold 57.89% and Belstar's promoter group 13.63%. Since Muthoot Group's initial capital infusion in 2016, Belstar has grown rapidly, expanding its branch network to 650 in 19 states with over INR 3,100 crore in AUM and upgrading its rating from CARE BBB- to CRISIL AA-.
From the Venture Intelligence PE-VC Deal Database: Maj Invest had agreed to invest INR 200-Cr in Belstar in 2018. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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