CDC to invest $149m in India Infoline Finance

CDC will subscribe to a combination of equity shares and compulsorily convertible preference shares, and - assuming full conversion - end up with a 15% stake in India Infoline Finance, according to a filing. The investment is intended to help IIFL expand its financing business and address the capital needs of underserved segments.

Set up in 2004, India Infoline Finance makes home and property loans and gold loans, provides commercial vehicle and healthcare financing, and offers loans against securities and small and medium-sized enterprise business loans. As of March 2016, its loan book was worth INR177.7 billion and net profit for the previous 12 months stood at INR3.4 billion.

CDC invested in IIFL in 1999. Srinivasan Nagarajan, the DFI's South Asia head, noted that the investment in India Infoline Finance would go towards affordable housing and micro- and SME financing. "CDC's ability to provide long-term capital means that we can provide IIFL Finance with the patient backing it needs to reach even more customers in underserved sectors and regions of India," he added.

Last year, General Atlantic paid INR11.2 billion for a minority interest in IIFL Wealth Management, another subsidiary of IIFL Holdings.

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• Topics
• South Asia
• Financials
• Expansion
• NBFCs
• India
• CDC Group
• Growth capital
• Financial Services