Satin Creditcare Network Limited (SCNL), a prominent microfinance institution in India, has announced the successful completion of its Qualified Institutional Placement (QIP). Launched on 14th December 2023, the issue garnered substantial interest from top institutional investors, including ICICI Prudential Life Insurance Company Ltd., Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company Ltd., leading to an oversubscription of 1.9 times.

Strong Response from Institutional Investors

The company issued 1,08,36,584 equity shares at a face value of Rs. 10 each to eligible Qualified Institutional Buyers (QIB) at an issue price of Rs. 230.70 per share, aggregating to Rs. 250 crores. This includes a discount of Rs. 12.11 per share, calculated as 4.99% on the floor price of Rs. 242.81 under the SEBI ICDR Regulations.

Enhancing Growth Prospects and Balance Sheet Strength

HP Singh, CMD of Satin Creditcare Network Limited, expressed his appreciation for the overwhelming market response. The proceeds from the QIP are expected to support the company’s growth guidance, long-term capital growth, and funding needs for its subsidiaries. This move further bolsters SCNL’s healthy capital adequacy ratio, enhancing the balance sheet and underlining the company’s growth-oriented performance and strong asset quality.

About Satin Creditcare Network Limited

SCNL, with a presence in 24 states and union territories, serving over 96,000 villages, is dedicated to providing a comprehensive range of products and services for the financially underserved community. The company aims to be a leader in gender empowerment through technology-driven sustainable strategic partnerships. Beyond microfinance, SCNL offers an array of financial products in the Non-MFI segment, including loans to MSMEs, affordable housing loans, and business correspondent services.

Diversification and Expansion in Financial Services

In 2017, SCNL established a housing finance subsidiary for affordable housing loans, and in 2019, it received an NBFC license to commence MSME business. The merger of its wholly-owned subsidiaries, Taraashna Financial Services Limited and Satin Finserv Limited, effective from March 2023, is a testament to SCNL’s commitment to diversifying and strengthening its financial services portfolio.

Conclusion:

Satin Creditcare Network Limited’s successful QIP is a landmark achievement in India’s microfinance sector. This strategic equity raise, backed by leading institutional investors, sets the stage for SCNL to expand its influence and continue providing essential financial services across India.

  Bajaj Allianz Life Insurance, Bandhan Mutual Fund, HP Singh, ICICI Prudential Life, India, Satin Creditcare Network