Adani Capital Pvt. Ltd, the NBFC arm of the Adani Group, envisioned on lending to small & micro entrepreneurs, has acquired Essel Finance’s MSME loan business. The business has a loan book of worth Rs 145 crore comprising 1100 customers, a staff strength of 40 professionals and operates out of 10 cities in India.
Gaurav Gupta, CEO, Adani Finserve Private Limited said in a statement, “The acquisition complements our existing MSME business and helps us expand to new geographies including Noida and Chennai. The decision to acquire is led by the fact that we operate in similar segments, which is secured lending focused on income-generating borrowers. It is an opportunistic acquisition. Our near term focus is to focus on improvising processes, leveraging technology and enhancing productivity”.
As on December 31, 2019, the overall lending book of NBFC and the housing finance business was around Rs 1100 crore with the latter contributing around Rs 150 crore. The company has more than 18,000 entrepreneur borrowers and homeowners across both the business. The gross NPAs as on December 31, 2019 stood at Rs 2.4 crore.
Adani Finserve, which majorly operates in western India, is aiming to expand its geographic operations gradually in central and east India, aiming states like Madhya Pradesh, Chhattisgarh and Orissa. With the geographical expansion and organic growth, the company is expecting the business to hit Rs 2,700-3,000 crore by the end of the next fiscal.
MGB Business Advisors Pvt. Ltd was the financial adviser to the transaction while Cyril Amarchand Mangaldas was the legal adviser to the transaction.