Kirloskar Group's NBFC aims to add Rs 800 crore to AUM by March 2024
Arka Fincap, a non-bank lender promoted by the Kirloskar Group, on Tuesday said it is aiming to add another Rs 800 crore to its Assets Under Management (AUM) by March 2024. The shadow bank, which announced its plans to raise up to Rs 300 crore from a non-convertible debentures issue, will be focusing on lending to small businesses going forward, according to a statement. Its AUM currently stands at Rs 4,200 crore and the NBFC is aiming to close FY24 with an AUM of Rs 5,000 crore, the statement said. Further, it said the company plans to open 10 more branches by March to take its overall network to 40 branches, and will be adding about 175 employees to take its overall staff size to 500 by March 2024. Kirloskar group had infused Rs 1,000 crore into the NBFC commenced operations in 2019. It is offering coupons of up to 10 per cent on the NCDs, the statement said, adding that the NCDs come in three tenors of 24 months, 36 months and 60 months.
Arka Fincap announces NCD issue of Rs 300 crore, issue opens on December 7
Arka Fincap announced the public issue of non-convertible debentures (NCDs) worth Rs 300 crore on December 5. NCDs will have a face value of Rs 1,000 each. The base issue size for the offer is Rs 150 crore. There is also a green shoe option of Rs 150 crore if the issue is oversubscribed. Tranche I issue will open on December 7 and will close on December 20. JM Financials and Nuvama Wealth Management are the lead managers of the issue. CRISIL gave an AA-/Postitive rating for the NCDs. The NCD’s coupon rates are between 9 and 10 percent per annum with quarterly and annual interest options. The company in a press release said that the NCDs will have three tenors: 2 years, 3 years and 5 years with effective yield in these tenors at 9.29 percent, 9.62 percent and 9.99 percent, respectively. The company said the NCDs will be listed on BSE. Arka Fincap added that 75 percent of the funds will be utilised for “onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes”. “We believe that we have a well-diversified funding profile that underpins our strong liquidity management system, our strong credit rating and brand equity. The public issue of NCDs is in line with our strategy of liability diversification,” Vimal Bhandari CEO of Arka Fincap said. Arka Fincap is a part of Kirloskar group. The company provides structured-term financing solutions to four areas which include corporate lending, real estate and urban infra financing, MSME lending and personal lending. As of September 30, the company’s loan book stood at Rs 4033.19 crore.
Kirloskar Capital is now Arka Fincap
Kirloskar Capital, a wholly-owned subsidiary of Kirloskar Oil Engines and part of Kirloskar Group, has undergone a repositioning of its brand and changed its name to Arka Fincap Limited. Atul Kirloskar, Executive Chairman, Kirloskar Group, said the NBFC industry is at the cusp of new beginnings and holds tremendous untapped opportunities. “With the government stimulus measures and reforms, integration of technology and greater corporate governance, Arka Fincap is poised for growth based on its patient capital approach.” Backed by the strong business fundamentals of the group, “we aim to drive financial empowerment by accelerating innovations and technology solutions”, added Atul Kirloskar. Under industry veteran Vimal Bhandari, Executive Vice-Chairman and CEO, Arka Fincap will continue to focus on providing growth capital to small- and medium-sized enterprises and corporates. Bhandari said the company aims to provide “digitally-enabled and customised financial solutions to customers and help them achieve financial requirements”. The corporate name change will be implemented across the company’s products and services with immediate effect.
A customer-focussed, digitally enabled, systemically important.
A customer-focussed, digitally enabled, systemically important Non-Banking Finance Company (NBFC). We provide secured and unsecured financing solutions to MSMEs. Provide secured and unsecured financing solutions to MSMEs. Non-Banking Finance Company (NBFC). We provide secured and unsecured financing solutions to MSMEs. Provide secured and unsecured financing solutions to MSMEs. Non-Banking Finance Company (NBFC). We provide secured and unsecured financing…