Share Microfin, the first microfinance institution (MFI) to obtain a non-banking finance company (non-deposit) licence in the country, is planning to disburse loans worth Rs 67,990 crore and increase its client base to 13 million in the next five years.
The Hyderabad-based MFI’s client base and cumulative loan disbursement till March 2009 stood at 1.87 million and Rs 5,314 crore, respectively. Share Microfinance is exploring various funding options, including equity infusions of Rs 250 crore in the current financial year, increasing partnership with banks and financial institutions, and raising money through bond issues, securitisations and initial public offerings (IPOs). “The equity infusion will be completed in two months,” Managing Director M Udaia Kumar said, adding that the company would come out with an IPO in a couple of years.
The institution has plans to issue non-convertible debentures of Rs 200 crore, apart from a Rs 100-crore bond even as it is looking forward to equity infusion by the International Finance Corporation, the private equity arm of the World Bank. In 2009-10, it expects to disburse loans amounting to Rs 4,011 crore as against Rs 2,065 crore last year.
Similarly, the number of clients is estimated go up from 1.87 million last year to 2.8 million this year. The NBFC is expanding its operations to Orissa and Kerala in the current year to cover 18 states in the country. By 2014, according to the MFI’s estimates, it would have operations in 20 states with 4,500 branches and 27,450 employees. As against this, it currently has a workforce of 7,463 and a branch network of 766 spread across 16 states. “Share Microfin has witnessed a 90 per cent growth in clients as well as in loan disbursement in the past three years,” Kumar said, adding he was confident that the growth rate would continue for the next five years.
With an objective of strengthening its brand, the MFI recently adopted a new corporate logo that represents the ‘Spirit to Overcome’. Already in tie-up with 26 banks, it recently inked a rated loan assignment transaction of Rs 49.34 crore with Yes Bank, where the bank is acting as financial advisor, manager and arranger.