Capital India Finance Limited ("CIFL"), in its board meeting held earlier today, approved the sale of its entire stake in housing finance subsidiary Capital India Home Loans Limited ("CIHL") to Weaver Services Private Limited, which is backed by prominent investors. Valued at INR 26,700.00 Lakhs for 100.00% equity of CIHL, this transaction is part of CIFL's strategic re-alignment to focus on its core businesses and grow them further. The transaction is subject to regulatory approval.
CIFL is an MSME focused NBFC, spread across 49 cities in India, offering customized financial solutions which include Lending business and Forex services. CIFL has reported a revenue growth rate of 27.70% CAGR over the last 3-years period.
By divesting its non-core home finance business, CIFL aims to free up capital for investment in its primary business, thereby strengthening its balance sheet. This move not only enhances overall operational efficiency but also reduces exposure to specific market risks associated with the affordable housing finance sector.
This transaction marks a significant milestone in the journeys of both CIFL & CIHL.
CIHL is one of India's new age players in the affordable housing segment and has built a strong growth trajectory since its inception.
Mr. Keshav Porwal, Managing Director, Capital India Finance Limited commented "I am incredibly proud of our Company's growth and achievements over the years. We have consistently strived to provide tailored financial solutions that cater to the diverse needs of our customers, from micro small and medium enterprises to individuals. Our commitment to excellence, coupled with a deep understanding of the Indian market, has enabled us to establish a strong reputation in the industry. CIHL has done an exceptional job in developing and delivering competitive and customer-centric home loan products; however it is now time for CIFL to deepen its focus on its core competencies where we see a huge potential with our country's rapidly growing economy. I wish CIHL to continue its legacy in its next phase of growth."
Mr. Pinank Jayant Shah, Chief Executive Officer, Capital India Finance Limited added "The sale of CIHL to Weaver Services Private Limited is the validation of Capital India's prowess in building scalable retail lending businesses. With this transaction, Capital India Finance gets a strategic push to bolster its Lending business and continue to work towards being the preferred partner for MSMEs in India. This transaction is in the best interest of CIHL shareholders towards greater value creation. The capital freed up with this sale, will allow Capital India to grow on back of strong equity capitalization and improving operating metrics."
Ravi Virwani, Chief Executive Officer, Capital India Home Loans Limited, said, "The affordable housing finance segment is poised for significant growth. At CIHL, we are fully committed to creating value for all the stakeholders as we establish ourselves as a new-age home finance solutions provider. Today and going forward, our focus on innovative customer-centric solutions, product diversification, and superior customer experience remains steadfast, supported by cutting-edge technology and analytics."
Shares of Capital India Finance Ltd was last trading in BSE at Rs. 266.95 as compared to the previous close of Rs. 253.10. The total number of shares traded during the day was 469655 in over 2192 trades.
The stock hit an intraday high of Rs. 278.40 and intraday low of 260.00. The net turnover during the day was Rs. 130176061.00. |
