Date:22/08/2008 URL: http://www.thehindu.com/2008/08/22/stories/2008082255601600.htm

Business

Equitas gets second round of funding

Staff Correspondent

CHENNAI: Chennai-based Equitas Micro Finance India Pvt. Ltd. (Equitas) has concluded its second round capital infusion of Rs. 50 crore through the issue of compulsory convertible preference shares to three investors, namely, Bellwether Microfinance Fund, India Financial Inclusion Fund and MVA Ventures. The preference shares are to be converted to equity by August 2009.

Addressing a press conference here on Thursday, P. N. Vasudevan, Managing Director, Equitas Micro Finance India, said Bellwether Microfinance Fund and India Financial Inclusion Fund had jointly invested Rs. 25 crore and MVA Venture the balance Rs. 25 crore.

The promoters, by the end of October, would be investing another Rs. 5 crore. Equitas now had Rs. 65 crore of net worth, including the first round of capital raised. The company had a debt of Rs. 50 crore. Mr. Vasudevan said the lending rate of Equitas was 26 per cent and the borrowing rate between 13.5 and 15 per cent.