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Micro-lender Seeks Investors for Shareholder Exit
9 Feb
Summary
- CreditAccess India seeks new investors for shareholder exit options.
- Long-term investors like Olympus Capital Asia may exit soon.
- Company aims for fair market value exit, not a discounted sale.
CreditAccess India BV, based in the Netherlands, is exploring options to bring in new investors. The primary goal is to create an exit opportunity for its long-term shareholders, such as Olympus Capital Asia and the Asian Development Bank. These investors have been with the company for a significant period and are seeking liquidity.
Company officials state that the microfinance industry is currently in a strong up-cycle. They are focused on planning a fair market-valued exit that also enhances their global standing and protects stakeholder value. Potential investors could be strategic partners or financial entities who align with the company's vision for sustained growth.
Existing investors, representing about 40% of the stake, are looking for an exit. CreditAccess India's Deputy Chairman Udaya Kumar Hebbar stressed that liquidity will be created over time with value creation, safeguarding all stakeholders. He dismissed reports of a discounted takeover as speculation, reiterating the desire for a fair market exit.
CreditAccess India holds a significant stake in its subsidiary, CreditAccess Grameen. The company has ambitious growth plans, targeting a gross loan portfolio of ₹50,000 crore by 2028. It currently boasts a substantial customer base and a strong capital adequacy ratio, indicating no immediate need for growth capital.
