Sep 13 2012
Mumbai: IntelleCash Microfinance Network Co. Pvt. Ltd, a subsidiary of investment banking services and advisory firm Intellectual Capital Advisory Services Pvt. Ltd ( Intellecap ), has taken a controlling stake in Kolkata-based microlender Arohan Financial Services Pvt. Ltd through a series of complex transactions for Rs. 52 crore.
It’s the first sizeable acquisition in India’s microfinance sector since it ran into a crisis after Andhra Pradesh in October 2010 passed a law that restricted the operations of microlenders in the state, which then accounted for one-quarter of the industry’s assets.
Analysts said the deal may signal the start of consolidation among microfinance institutions (MFIs), which have been weighed down by bad loans and seen funding dry up.
Mumbai-based IntelleCash has bought a 56% stake in Arohan, said Anurag Agrawal, co-founder, chief operating officer and director of Intellecap.
