India, December 22, 2023: Satin Creditcare Network Limited (SCNL), a leading microfinance institution in India, announced the successful completion of its Qualified Institutional Placement (“QIP”). The issue that was launched on 14th December 2023 received a good response from reputed institutional investors such as ICICI Prudential Life Insurance Company Ltd., Bandhan Mutual Fund, and Bajaj Allianz Life Insurance Company Ltd., among others, and was oversubscribed 1.9 times.
The Company has issued and allotted 1,08,36,584 equity shares of face value of Rs. 10 each to eligible Qualified Institutional Buyers (“QIB”) at an issue price of Rs. 230.70 per equity share (including a premium of Rs. 220.70 per equity share), which includes a discount of Rs. 12.11 per Equity Share i.e. 4.99% on the floor price of Rs. 242.81, as determined under Regulation 176(1) of SEBI ICDR Regulations aggregating to Rs. 250 crores, under the issue.
Commenting on the QIP, Mr. HP Singh, CMD of Satin Creditcare Network Limited, said, “We are overwhelmed with the great response received from the market on this transaction. The QIP proceeds will aid the Company’s growth guidance, long-term capital growth, and funding requirements for our subsidiaries. The Company already has a healthy capital adequacy ratio, and this issue will further bolster the balance sheet, underscoring Satin’s growth-oriented performance coupled with strong asset quality. Furthermore, it will enhance the future growth potential of our business and the sector. This equity raise has strengthened Satin’s capital base with new institutional investors joining hands to propel the Company towards sustained success.”