Capri Global Capital’s board has approved raising up to ₹4,000 crore through equity shares, debt securities, convertible securities, warrants or other financial instruments, the non-banking financial company (NBFC) said in a regulatory filing on Wednesday.
The company may raise the funds through one or more routes, including a rights issue, preferential issue, public issue, qualified institutions placement (QIP), foreign currency convertible bonds (FCCBs) and external commercial borrowings (ECBs).
The proposed fundraising will be subject to applicable laws and regulatory and statutory approvals, including shareholder approval. The funds may be raised in one or more tranches, Capri Global Capital said, adding that it would provide further details of any preferential issue once its terms are finalised.
The fundraising plan comes as the Mumbai-based lender looks to expand its retail lending business. In August, the company said it expected its assets under management (AUM) to more than double from around ₹40,000 crore to over ₹1 lakh crore in the next three to three-and-a-half years.
Managing Director Rajesh Sharma said growth would be driven largely by the gold loan business and steady demand across other retail lending segments. He also said the company planned to add around 400 branches this year, primarily to expand gold lending, to its existing network of 1,433 branches.
In July, Sharma said the company expected its branch network to reach at least 1,400 by the end of the year. He added that established branches were expected to have AUM of ₹21–22 crore each, while newer loan branches would have less than ₹5 crore each.
Capri Global Capital expects gold loans to account for around 55% of its overall loan book, supported by customer additions and branch expansion. The portfolio has a loan-to-value (LTV) ratio of around 71%. The company has said that, despite gold prices moderating from recent highs, recoveries remain manageable through timely collections and auctions.
Capri Global Capital shares closed 0.76% lower at ₹247.01 on the NSE on Wednesday, down ₹1.89 from the previous close.
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