International Finance Corporation (IFC) is picking up to a 20% stake in a venture promoted Tata Capital and Japan's Capital Services Holding Corporation in the receivables space. Mumbai-based India Collections Management Pvt Ltd could be raising around $5 million (Rs 23.4 crore) for 20% stake, valuing the company at $25 million (Rs 117 crore). The firm would be involved in receivables servicing, collection and management services to financial institutions.
India Collections Management will help financial institutions manage and collect non performing loans, among other services. This would help improve bank profitability and the credit culture, while also supporting the distressed asset sales processes.
Tokyo-based Capital Services Holding has offices in Japan, China, and other South East Asian economies. It offers loan servicing, real estate management, technology solutions and related services with $8 billion under management.
The financial services arm of the Tata Group has been expanding its services and has a presence in various businesses like consumer and infrastructure financing, advisory services, private equity, among others. Tata Capital recently said it plans to hive off infrastructure financing into a different subsidiary. It has also tied up with Japan’s Mizuho Securities to raise a growth capital private equity fund.
Besides a special situations fund, Tata Capital also holds a 20% stake in International Asset Reconstruction Company Pvt Ltd.