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MICROCAPITAL BRIEF: BASIX Microfinance Institution Bhartiya Samruddhi Finance Limited (BSFL) of India Plans to Raise $16.8m via Non-Convertible Debentures (NCDs)

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Bhartiya Samruddhi Finance Limited (BSFL), an Indian microfinance institution (MFI) that is a member of the BASIX (Bhartiya Samruddhi Investment & Consulting Service) Group, is reportedly planning to raise INR 750 million (USD 16.8 million) in non-convertible debentures (NCDs) within the next couple of months.  Sajeev Viswanathan, chief executive officer of BSFL, told India-based business newspaper, Business Standard, that the Small Industries Development Bank of India would subscribe to the NCDs, and then they would list them on an unnamed stock exchange. “The face value and other details are being worked out. We are in talks with a rating agency for this instrument,” he commented. “We might go in for an initial public offering (IPO) in 2013,” Mr Viswanathan added.

Mr Viswanathan told Business Standard that BSFL will require capital of around INR 15 billion (USD 337 million) for operations in the 2011 financial year. The MFI already has INR 6 billion (USD 135 million) committed from banks. MicroCapital recently reported that

BSFL raised INR 1.1 billion (USD 26.5 million) from investment firms Matrix Partners India, Hivos-Triodos Fonds and Lok Capital LLC.

According to the MIX Market, the microfinance information clearinghouse, as of March 31, 2009, BSFL had a gross loan portfolio worth over USD 73.6 million and 499,000 active clients.

By: Christine Chang, Research Associate

About Bhartiya Samruddhi Finance Limited (BSFL):

Bhartiya Samruddhi Finance Ltd. (BSFL) is a regulated non-banking finance company (NBFC) based in Hyderabad, India, that was founded in 1997. It is part of the BASIX Group, which provides financial services, agricultural/business development services and institutional development services to rural poor households. As of March 31, 2009, BSFL had a gross loan portfolio worth over USD 73.6 million, total assets of USD 111 million, return on assets of 1.8 percent, return on equity of 15.6 percent and 499,000 active clients.

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