Capital First gets board's approval to raise Rs 340 cr

Non-banking financial company Capital First today said its Board has approved plan to raise Rs 340 crore through preferential issue.

The special resolution for raising Rs 340 crore on a preferential basis by allotting 47.8 lakh shares to Caladium Investment was passed with majority at the board in its extraordinary general meeting (EGM), the company said in a BSE filing.

The firm had proposed to raise Rs 340 crore on a preferential basis by allotting 47.8 lakh shares to Caladium Investment, an affiliate of GIC, Singapore's sovereign wealth fund at Rs 712.7 per share.

Capital First had recently said that post this transaction, the total capital (including Tier 1 and Tier 2 capital) of the company will increase to Rs 3,263 crore on a consolidated basis and the capital adequacy will increase to 21.6 per cent.

The company reported a net profit of Rs 57.6 crore for Q2 FY2017, an increase of 40 per cent from Rs 41.0 crore in Q2 FY2016.

Its assets under management (AUM) grew 32 per cent to Rs 17,937 crore as on September 30, on a year-on-year basis, with its retail loan portfolio contributing to 90.1 per cent.

The gross NPA and net NPA of the company stood at 0.98 per cent and 0.45 per cent respectively as on September 30.