IFC part exits Indian NBFC to WestBridge

IFC sold 2.96 million shares at INR287 apiece, generating proceeds of INR848.9 million ($14.2 million), according to Moneycontrol. Jwalamukhi Investment Holdings, a vehicle controlled by WestBridge duly picked up 300 million shares for approximately the same price.

IFC originally invested INR1 billion in CIF in April 2010, taking a 9.5% stake, AVCJ Research's records show. Five months later it put in another $3.24 million as part of a joint deal with Amansa Capital and Aquarius Investment Advisors, worth $23.19 million in total.

IFC held an 8.26% interest in the business as of year-end 2013. Earlier this year it committed INR3.15 billion in debt financing to CIF by subscribing to unsecured non-convertible debentures intended to help the NBFC scale up its operations in several low-income states and reduce reliance on bank borrowings.

Other backers include Creador and Multiples Alternative Asset Management, which invested $39.9 million between them in late 2011.

CIF primarily focuses in the rural and semi-urban sector with core business segments covering vehicle finance, home equity loans, corporate finance, stock broking and distribution of financial products. It has more than 500 branches in 22 Indian states, including nine low-income states, and a loan portfolio of around INR220 billion.

CIF aims to increase its customer base by 400,000 over the next few years.

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• Topics
• South Asia
• Financials
• Exits
• PIPEs
• WestBridge Capital Partners
• PIPE
• Financial Services
• Exit
• IFC