The promoters of the company, also known as Moneywise Financial Services Pvt. Ltd., have mandated Prudenthill Advisors LLP and Riverstone Capital Private Limited, both founded by ex-Credit Suisse bankers Rahul Bahety, Himanshu Sarda and Nipun Jain, to lead the advisory for this transaction, the people cited earlier said.
“The company is talking to some sovereign funds, impact funds and private equity funds to raise Rs 600 crore,” said a source. “The company will dilute “significant minority stake” in the process.”
This fund raise will be in a combination of primary and partial secondary, the source said.
A spokesperson of SMC did not respond to ET’s request for comment.Over the last two years, the company has grown at a CAGR of 35% and is expecting a similar momentum in the coming years, for which it is looking to use the funds. SMC Finance borrows largely from banks, non-banking finance companies and non-convertible debentures. As of June 2023, it had unsecured business loans (44%), loan against property (24%), receivables financing (17%), equipment financing (asset-backed financing 7%), loan against shares (5%), gold loans (2%), and supply chain financing (1%), according to an ICRA ratings report last year.The company’s asset quality has remained stable as gross non-performing assets stood at 2.18% as on March 31, 2024, against 2.3% a year earlier.
Moneywise is a wholly owned subsidiary of SMC Global, and the parent has deployed Rs 230 crore in the company. SMC Global is into several businesses, including retail equity broking, wealth management and advisory. The NBFC has an asset size of more than Rs 1,000 crore, mainly by lending against property, working capital financing, and asset financing, onward lending to NBFCs, MFIs, gold loans, loans against securities, and supply chain financing.
The management plans to grow the loan book and targets an AUM of Rs 5,000 crore in the next five years, according to a Crisil report published in February this year.
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