Bandhan launches cash hunt

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By OUR SPECIAL CORRESPONDENT
  • Published 26.08.10
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Calcutta, Aug. 25: Bandhan, one of the largest microfinance institutions in the country, is looking for investments of around Rs 100 crore from a private equity fund.

“We are talking to a foreign investor on this,” Chandra Shekhar Ghosh, chairman of Bandhan Financial Services Pvt Ltd, said.

Bandhan was founded in 2002. It provides loans to women and their families, small businesses, cottage industries and other SMEs.

Sidbi had acquired a 10.92 per cent stake in Bandhan for $10.7 million last year, valuing the company at close to $100 million. Sidbi’s stake went up to 12.23 per cent after the deal. In October 2008, it had acquired 1.31 per cent through the conversion of a $0.21-million loan into equity.

Several microfinance companies have successfully raised funds recently. SKS Microfinance raised $358 million through its maiden float, while Swadhaar FinServe raised Rs 27.5 crore from private equity firm Microvest and existing investors.

Fusion Microfinance raised Rs 4.5 crore from Incofin Investment, which is also a private equity firm.