October 2017: The board of directors of SCNL,at their meeting held on May 26, 2017, had passed the enabling resolutionto evaluate various fund-raising options including capital issuance by way of qualified institutions placement (QIP). This was approved by the shareholders of SCNLby way of a special resolution passed on July 6, 2017.
The QIP issue of SCNLopened on October 4, 2017 and closed on October 7, 2017, successfully raisingan amount uptoRs. 150 crore. SCNL,pursuant to the QIP, is issuingupto 4,918,032 equity shares to qualified institutional buyers (QIBs) at an issue price of Rs. 305 per equity share (including a premium of Rs 295 per share), after giving a discount of1.15% to the floor price of Rs. 308.56 per equity share, as per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2009, as amended.
ICICI Securities Limited and SBI Capital Markets Limited acted as the book running lead managers for the QIP. The allotment of equity shares will be made on or about October 11, 2017, post which SCNL will apply for final listing and trading approval from the stock exchanges.
Announcing the closingof the issue Mr. HP Singh, Chairman cum Managing Director, SCNL, said, “The QIP saw good participation from both existing and new investors. We are even more encouraged by the faith our investors and stakeholders continue to have in us. We plan to grow our microfinance book especially in our new areas of operations, and also diversify our book by providing financing to MSMEs and to the affordable housing segment.”
SCNL intends to use the net proceeds of the issue towards augmenting its capital base to meet its future capital requirements and for funding expenditure for general corporate purposes.
SCNL’s business is primarily based on the Joint LiabilityGroup (JLG) Model for providing collateral free, microcredit facilities to economically active poor women in both rural and semi-urban areas, who otherwise have limited access to mainstream financial service providers. SCNL also offersloans to MSMEs, product loans for financing purchase of solar lamps and loans for development of water connection and sanitation facilities.
About Satin Creditcare Network Limited
Satin Creditcare Network Limited (“SCNL” or “Satin”) was founded in 1990 by Mr. HP Singh – a qualified Chartered Accountant, with over 25 years of experience in retail finance industry. Having started its journey with individual micro loans to urban shopkeepers,in around 27 years since its inception, Satinis India’s third largest MFI(Source: Micrometer Reportas ofJune 30, 2017).
Today, Satin has an established, scalable and a sustainable business model. On a consolidated basis, Satin has a Gross AUM of Rs. 4,220 core as on June 30, 2017. Satinoffers its clients a variety of loan products under the MFI segment. Satin also offers a bouquet of financial products in the Non-MFI segment (comprising of loans to MSMEs), and business correspondent services & similar services to other financial institutions through TSL (a business correspondent company and a 91.11% subsidiary of SCNL).In April 2017, SCNL also incorporated a wholly owned housing finance subsidiary for providing loans to the affordable housing segment. This is a logical extension of Satin’s mission to provide financial products that cater to the underserved segments of the market.
As of June 30, 2017, SCNL had a footprint of794 branches across 17states/union territories with more than 26 lakh borrowers. SCNL has its strong presence and serves its clients throughout Uttar Pradesh, Bihar, Madhya Pradesh, Punjab, and Uttarakhand among others.