Hyderabad-based micro finance institution (MFI) Basix is planning to raise Rs 200 crore through private equity route this financial year. This is will be the fifth round of private equity infusion in the MFI since 2001.
Existing investors in Basix include SIDBI, IFC and private equity players such as Matrix Partners, Lok Capital, Hivos Triodos Fund and Avishkaar Goodwell. This infusion of Rs 200 crore is likely to happen through a new private equity investor. The funds will help in meeting MFI’s growing lending needs with addition of new states such as Gujarat and UP to its network this year. Basix operates across 16 states at present, catering to about 2 million customers. It would also help the MFI maintain the capital adequacy ratio a measure of financial strength of 12 per cent stipulated by the Reserve Bank of India. From April 2011 the CAR would be increased 15 per cent by RBI. Basix aims to go in for an IPO once it achieves loan outstanding amount of Rs 3,000-4,000 crore in three years. At present its loan outstanding amount stands at Rs 1,300 crore, which is expected to touch Rs 2,200 crore by March 2011.
Also, FY11 will also see launch of micro pension fund by Basix. Vijay Mahajan, chairman of Basix said, “We are doing a pilot of this micro pension fund with our partners Invest India Micro Pension Services, Sewa bank and UTI. We have sold 10,000 micro pension funds in last few months and hope to sell 1 lakh units by March 2011.”
Source: My Digital FC