Two of India’s biggest microfinance firms Share Microfin and Asmitha Microfin Ltd are said to be looking at merger of their microfinance businesses. The two firms are both headquartered in Hyderabad and Share Microfin is said to be in an advanced stage for a public issue as well. The two firms are keen on bolstering valuations as the merger turns the fresh entity into India’s third biggest firm in the Microfinance Industry. SKS Microfinance is currently the biggest microfinance company in the country followed by Spandana Microfinance.
SHARE, is currently among the top five microfinance institutions in India and started its operations in 1989 as a not-for-profit society. It was the first microfinance institution (MFI) in India to obtain a Non Banking Financial Company (Non Deposit) license. SHARE Microfin currently has around a 1000 branches, and a loan portfolio of Rs 8,945 crore as of March 31st 2010.
Asmitha Microfin was set up in February 2001. The promoters of both Asmitha and Share Microfin are the same.To know more about Share and Asmitha Microfin you can read Prof M.S Shriram’s paper on Commercialization of Microfinance in India