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Centrum Capital to raise about $200 mn via equity, debt
Photo Credit: 123RF.com

Financial services provider Centrum Capital Ltd said it would raise cash through debt and equity totalling Rs 1,500 crore ($202 million). 

The company said its board has approved resolutions to raise debt capital of up to Rs 1,000 crore and share capital of up to Rs 500 crore.  

Centrum also said that, in a bid to conserve its resources following the impact of the pandemic on the economy, it would not pay dividends for the financial year 2020-2021.  

The company, which provides services in areas including investment banking, SME, MSME and micro finance loans, reported pretax loss of Rs 5 crore for the year ended March 31, compared to a profit of Rs 24 crore last year.  

Last week, the Reserve Bank of India decided to give an in-principle approval to the company’s unit Centrum Financial Services Ltd to set up a small finance bank, paving the way for Centrum to take over crisis hit Punjab and Maharashtra Cooperative (PMC) Bank.  

In 2019, Centrum expanded its unsecured lending portfolio, which then consisted of microfinance, by launching personal loans.  

It has expanded into micro lending (Centrum Microcredit Ltd), affordable housing finance (Centrum Housing Finance), and loans to MSMEs over the last few years.  

Founded in 1997, Centrum provides fee-based services in several segments, including wealth management, equity and debt, equity capital markets, mergers and acquisitions, corporate finance, primary and secondary debt placement and corporate debt restructuring. 

 

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