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Informist, Monday, Dec. 16, 2024

 

By Kshipra Petkar

 

MUMBAI – Capri Global Capital is looking to grow its assets under management by 25-30% annually for the next five years, its Managing Director and Chief Executive Officer Rajesh Sharma said. "Our gold loan book is rising, our affordable book has been growing by almost 50% on year. In MSME (micro, small and medium enterprises), we have started micro-LAP (loan-against property), solar rooftop loans, and construction finance, among others. So, given all this, our average growth has been at least 40% year-on-year," Sharma told Informist in an exclusive interaction.

 

The assets under management of the non-banking finance company were up 56% on year to INR 192.72 billion as of Sept. 30, as per the investor presentation of the company. Out of the total assets under management, the highest share was contributed by the gold book at 34.2%, followed by micro, small and medium enterprises at 25%. Housing and car finance books accounted for 22.2% and 17.4% of the total AUM respectively, as on Sept. 30.

 

Asked about the Reserve Bank of India's warnings to non-banking finance companies regarding excessive growth, he said, "The regulatory action will strengthen you. In the short term, yes, it does make you a little compliance-heavy but, if you think about it, when you grow faster as a country, it is important that compliance is strong."

 

The company is aiming to increase the share of co-lending to 20% from the current 18.3%, Sharma said, without giving a timeline on when it will be achieved. The assets under management under co-lending were at INR 35.19 billion as of Sept. 30, most of it contributed by co-lending of gold loans.

 

Capri Global Capital in October tied up with Credit Fair and launched a rooftop solar finance product to take the size of its loan book to INR 10 billion. Sharma said the company is not looking at any tie-up in any other renewable sector.

 

The company plans to tap the debt market in Jan-Mar through a public issue, people in the know said. It may also come out with a qualified institutional placement or a rights issue when there is a need to shore up the capital. The company has board approval to raise up to INR 10 billion through debt and INR 20 billion through equity instruments.  End

 

Edited by Saji George Titus

 

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