Capri Global Capital (CGCL) completes Rs 2,000cr QIP backed by BlackRock, HDFC Life, Quant Mutual Fund

Capri Global Capital Limited (NSE: CGCL, BSE: 531595) has raised ₹2,000 crore through a Qualified Institutions Placement (QIP), marking its largest equity fundraising effort in over a decade. The offering, which concluded on June 12, 2025, received strong interest from foreign institutional investors, domestic mutual funds, and insurance companies, reflecting broad confidence in the Indian non-banking financial company’s strategic roadmap and digital transformation push.

The equity issuance saw participation from prominent entities such as BlackRock, Quant Mutual Fund, 3P Investment, ICICI Prudential Life Insurance, HDFC Life Insurance, SBI General Insurance, Allspring Global Investments, TATA AIF, and MK Ventures Capital. The QIP was executed under the SEBI (ICDR) Regulations, 2018, and resulted in the allotment of approximately 136.5 million equity shares.

The QIP pricing and allotment were approved by the Capri Global Capital Limited QIP Committee on June 12, 2025. The stock was trading at ₹173.55 on June 13, marginally lower from its previous close of ₹174.74, with traded volumes crossing 33 lakh shares during the session.

When was the last major equity issuance by Capri Global Capital?

This ₹2,000 crore QIP marks the first major equity raise by Capri Global Capital Limited in more than ten years. The lender, which was listed on Indian stock exchanges in October 2010, had previously relied on debt markets and internal accruals to fund expansion.

Over the last decade, Capri Global Capital Limited has evolved from a niche financial intermediary to a diversified, retail-focused non-banking financial services provider with a presence across secured loan segments. As of March 31, 2025, its asset under management (AUM) stood at ₹22,857 crore, and it served over 5.5 lakh customers through 1,100 branches and a 11,400+ employee base concentrated in Northern and Western India.

Which investor groups participated in Capri Global’s ₹2,000 crore QIP?

The QIP garnered an “overwhelming response,” according to Capri Global’s official statement. The participation of both domestic and global long-only funds was notable, reinforcing institutional confidence in the lender’s risk governance, underwriting quality, and ability to scale.

Institutional investors that subscribed to the issue included BlackRock, Quant Mutual Fund, Think Investments, ICICI Lombard General Insurance, HDFC Ergo, and Allspring Global Investments. The presence of large insurance players such as ICICI Prudential Life and SBI General Insurance suggests alignment with Capri Global’s long-term lending focus and conservative capital allocation philosophy.

Indirect cues from analysts tracking NBFCs indicate that the wide diversity of QIP participants—from AIFs to general insurers—signals recognition of Capri’s capital efficiency, asset quality management, and execution consistency.

How will Capri Global Capital use the ₹2,000 crore raised?

According to Managing Director Rajesh Sharma, the fresh capital will be used to deepen Capri Global Capital Limited’s lending verticals, expand its footprint into new geographies, and strengthen its AI and data science capabilities.

The Indian NBFC plans to scale up its four key secured lending lines—MSME loans, gold loans, construction finance, and housing loans. The last of these is handled through its 100% subsidiary Capri Global Housing Finance Limited (CGHFL). Additionally, Capri operates a fee-based insurance distribution business and partners with 12 banks and financial institutions for car loan origination.

Sharma stated that the QIP proceeds would also help Capri diversify its borrowing mix, improve its liability franchise, and enhance credit access in underserved regions. The company aims to build a more efficient and resilient portfolio by leveraging AI-powered underwriting and automation frameworks.

What is the current financial standing of Capri Global Capital?

As of June 13, 2025, Capri Global Capital Limited had a market capitalization of ₹14,319.89 crore and a free float market cap of ₹4,303.51 crore. Its adjusted price-to-earnings (P/E) ratio stands at 30.13, consistent with peers in the mid-cap NBFC segment.

The stock has experienced a 52-week high of ₹236.25 (on June 25, 2024) and a 52-week low of ₹150.51 (on June 4, 2025), indicating volatility ahead of the QIP. Daily volatility currently hovers at 3.23%, with annualised volatility of 61.71%.

Capri Global’s average daily traded volume reached ₹57 crore on June 13, supported by robust institutional demand. The deliverable to traded quantity ratio stood at 39.88%, indicating healthy long-term investor participation.

Its liquidity position and capital adequacy are expected to improve post-QIP, allowing the company to further increase its exposure to secured high-yield lending while maintaining risk thresholds.

What are Capri Global’s growth drivers in India’s NBFC sector?

Capri Global Capital Limited is among a limited set of mid-sized NBFCs in India that maintain a secured, retail-lending-heavy book. This positions the firm more defensively against regulatory tightening and cyclical credit shocks.

Its continued investment in AI and data science for credit profiling and risk management aligns with a broader trend in Indian financial services, where technology adoption is becoming a key competitive differentiator.

The firm’s housing subsidiary CGHFL, combined with its vehicle loan distribution and composite insurance license, allows Capri to operate a hybrid model with both interest income and fee-based revenue streams. These factors make the business more resilient across rate cycles and asset classes.

With a composite license for life, health, and general insurance distribution, Capri is expanding non-lending income channels—a move increasingly being adopted by NBFCs and fintechs seeking margin stability.

Institutional and analyst sentiment on Capri Global’s equity raise

Market analysts note that the QIP structure—with broad-based long-only participation and minimal discounting—sends a strong signal to equity markets and credit rating agencies. The move is expected to improve the company’s debt-to-equity profile, giving it more room to navigate rising borrowing costs in the NBFC space.

Experts also point to Capri Global’s relatively low impact cost (0.12) and consistent trading interest from institutional desks as signs of growing buy-side engagement. Brokerage firms covering the stock are likely to revise their FY26 and FY27 growth forecasts upward following the capital raise.

The issue’s timing—just ahead of the second half of the fiscal year—also positions the firm well to capture fresh loan demand during India’s festive and wedding season cycles, especially for MSME and gold-backed loans.

What does the future hold for Capri Global Capital post-QIP?

Analysts expect Capri Global Capital Limited to continue strengthening its market share in Tier 2 and Tier 3 lending markets, especially in North and West India. The company is also likely to deploy part of the QIP proceeds into technology upgrades that facilitate faster loan approvals, credit risk segmentation, and process digitisation.

There is also a possibility that Capri may pursue selective acquisitions in fintech platforms or housing finance segments to accelerate scale and customer acquisition.

With the infusion of ₹2,000 crore, the lender is better capitalised to absorb future credit costs, broaden its borrower profile, and maintain asset quality in a competitive market.

While macroeconomic headwinds—including interest rate volatility and potential RBI policy changes—could pose challenges, Capri Global’s diversified revenue mix, capital base, and risk-calibrated growth model provide a strong buffer heading into FY26.