BBN Bureau
KOCHI/February 26-2022: Belstar Microfinance Ltd, a subsidiary of Muthoot Finance Ltd, has obtained the RBI approval for a primary equity infusion of Rs275 crore.
Belstar along with its promoters, Arum Holdings Ltd, MAJ Invest Financial Inclusion Fund II K/S, and Muthoot Finance, have signed an Amended Shareholders Agreement dated February 25, 2022 to give effect to the said infusion of capital into Belstar as per the approval.
An approval has also been obtained for a secondary offer for sale (OFS) by promoters for a total consideration of Rs 20 crore.
The new equity infusion will see Muthoot Finance stake in Belstar reduce from 70.01 per cent to 60.69 per cent. Â As part of the new capital infusion, Arum Holdings will invest Rs225 crore, whereas MAJ Invest Financial Inclusion Fund will invest Rs22 crore and Muthoot Finance another Rs28 crore taking the total investment to Rs275 crore.
Belstar Microfinance said it had signed a definitive agreement towards the new capital infusion on August 24, 2021. While promoter & promoter group will hold 14.29 per cent in the new arrangement, Maj Invest and the new investor, Arum Holdings will be holding 10.51 per cent and 14.51 per cent respectively, in the microfinance subsidiary of Muthoot Finance, the largest gold loan company in the country.
Financial details
Belstar had a total loans under management to the tune of Rs3835.8 crore as of December31, 2021 (Q3 Fy22). The company with a branch network of 675 branches has earned a revenue of Rs486.8 crore and a net profit of Rs15.9 crore for the nine month period ending December 31, 2021.
Belstar was incorporated in January 1988 at Bangalore and the company was registered with the RBI in March 2001 as an NBFC.
