L&T Finance acquires 26% stake in Grameen Capital

L&T Finance Ltd, a non-banking finance company (NBFC) wholly owned by L&T Finance Holdings Ltd, has acquired 26 per cent stake in social impact focused investment advisory firm Grameen Capital India, it said on Tuesday.

Although it did not disclose the deal amount, it had said in March that it is in advanced discussions with two institutional investors to raise additional equity capital to meet its initial target of raising $10 million.

In March, Grameen Capital had raised an undisclosed amount in funding from a group of investors, including Ratan Tata, chairman emeritus of Tata Sons, the holding firm of Tata Group, for a new debt investment vehicle.

The other investors in the firm's non-banking financial company (NBFC) included Dempo Group chairman Shrinivas Dempo and investment banker Vikram Gandhi besides existing investors, Grameen Foundation and Amit Patni and Arihant Patni (sons of Patni Computer co-founder Gajendra Patni).

It expects to commence lending from the new NBFC unit this year with a focus on financial inclusion, agriculture, affordable health and education.

“We will use this investment for catalyzing lending to social enterprises,” said Royston Braganza, CEO of Grameen Capital.

Established in 2007 as a JV between Grameen Foundation, Citicorp Finance and IFMR Trust, Grameen Capital India, is an investment advisory services firm targeting impact-focused enterprises through debt and equity funding solutions, credit enhancement and strategic advisory services.

It also advises double bottom-line funds on their impact investment programs in India. The firm claims it has facilitated more than $160 million of both equity and debt capital for social enterprises.

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