Adani Capital acquires Essel Finance’s MSME loan business

MUMBAI: Adani Capital Pvt. Ltd, the NBFC arm of the Adani Group, focused on lending to small & micro entrepreneurs, has acquired Essel Finance’s MSME loan business. The business has a secured loan book of approximately Rs 145 crore comprising 1100 customers, a staff strength of 40 professionals and operates out of 10 cities in India.

Gaurav Gupta, CEO, Adani Finserve Private Limited said in a statement, “The acquisition complements our existing MSME business and helps us expand to new geographies including Noida and Chennai. The decision to acquire is led by the fact that we operate in similar segments, which is secured lending focused on income-generating borrowers. It is an opportunistic acquisition. Our near term focus is to focus on improvising processes, leveraging technology and enhancing productivity”.

As on December 31, 2019, the overall lending book of NBFC and the housing finance business was Rs 1100 crore with the latter contributing Rs 150 crore. The company has over 18,000 entrepreneur borrowers & homeowners across both the business. The gross NPAs as on December 31, 2019 stood at just Rs 2.4 crore.

Adani Finserve, which primarily operates in western India, is aiming to gradually expand its geographic presence in central and east India, targeting states like Madhya Pradesh, Chhattisgarh and Orissa. Through the geographic expansion and organic growth, the company expects the business to reach Rs 2,700-3,000 crore by the end of the next fiscal.

MGB Business Advisors Pvt. Ltd was the financial adviser to the transaction. Cyril Amarchand Mangaldas was the legal adviser to the transaction.

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