Kolkata, Mar 29 (PTI) Micro-finance institution Village Financial Services (VFS) has raised Rs 25 crore from private equity firm Param Capital by offering around 12 per cent equity, a top official of the company said today.
This has been the first investment by any PE firm in VFS.
"We raised Rs 25 crore PE from Param Capital yesterday by offering around 12 per cent equity," MD of VFS Kuldip Maity said.
Next fiscal, VFS would tap other PE investments before an IPO, Maity told PTI.
VFS is expected to close the current financial year with an outstanding loan book of Rs 740 crore, a growth of 70 per cent over the previous fiscal.
Loan book growth in the current fiscal has been largely due to the expansion to newer regions like Chhattisgarh and Madhya Pradesh, he said.
The expected gross profit during this fiscal is expected to be in the region of Rs 12-15 crore, he said.
Maity said that over the next three fiscals, capital requirement would be to the tune of Rs 200-250 crore, adding that plans are also afoot to come out with an mid-sized IPO in 2018-19.
"The exact size of the IPO will be decided by the board," he said. PTI DC JM
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today