[ad_1]
In what could be the largest deal in the microfinance space so far, Swatantra MicroFin, promoted by Ananya Birla, Kumar Mangalam Birla’s daughter, is set to acquire Sachin Bansal-led Chaitanya India Fin Credit. Confirming businessline’s July 20 news break (https://www.thehindubusinessline.com/money-and-banking/ananya-birlas-svatantra-microfin-buys-out-sachin-bansals-microfinance-business/article67097616.ece ), Swatantra MicroFin announced that the deal is valued at ₹1,497 crore on Tuesday. This translates to about 1.6x FY23 price to book value. The deal closure is expected by the end of 2023, subject to receipt of regulatory approvals and customary closing adjustments.
The acquisition would help Swatantra MicroFin move up the league table among NBFC-MFIs to become the second largest player with assets under management of ₹12,409 crore as on March 31, 2023. The combined entity would have 3.6 million active customers through 1,517 branches across 20 States.
Commenting on the development, Ananya Birla, Founder and Chairperson of Svatantra, said: “The proposed acquisition will propel Svatantra to a significant leadership position. The combined entity will command a substantial reach, enabling the delivery of a diverse array of financial services to our clients across a geographically diverse portfolio. We are committed to being a responsible lender, and I believe our synergistic strengths and shared ethos will accelerate our ongoing journey to create a unique, valuable and impactful financial services entity.”
Navi Technologies (now Navi Finserv) was set up by Sachin Bansal in 2018 within months after his exit from Flipkart. Chaitanya was acquired by Sachin Bansal in September 2019 from its co-founders Anand Rao and Samit Shetty for Rs 739 crore.
“We have seen Chaitanya grow almost 6X in the last four years, making credit accessible to rural India. This transaction is in line with our strategic plan to focus on our digital-first businesses, as we continue our digital-first financial services through the Navi Group,” said Navi Chairman and CEO, Sachin Bansal while commenting on the deal.
JM Financial Limited acted as the exclusive financial advisor to Navi for this transaction.
[ad_2]
Source link
