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Warburg Pincus, through its affiliate Cloverdell, and HDFC Standard Life Insurance, have subscribed to Capital First’s preferential issue of equity shares for ₹178 crore.
Increase CARCapital First, which provides loans to small and medium enterprises, and financing for consumer durables and two-wheelers said, Warburg Pincus would subscribe to 83.6 lakh shares for ₹128 crore, and HDFC Standard Life would subscribe to 32.5 lakh shares for ₹50 crore. V Vaidyanathan, Chairman and Managing Director of the company told Business Line that the promoters would retain their existing stake at 72 per cent post the issue. The Tier I capital raising plan is at ₹153.80 a share.
He added that the proceeds from the proposed equity would be used to increase the capital adequacy ratio and for future growth plans. The company grew assets under management by 29 per cent to ₹9,070 crore during the twelve-month period ended December 31. Over 80 per cent of its assets are in retail businesses.
The company has 168 branches across 40 cities and employs 1,085 people. The promoter Warburg Pincus, through Cloverdell, has over $37 billion in assets under management.
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