Hyderabad-based micro finance institutions SHARE Microfin Ltd and Asmitha Microfin Ltd have decided to swap certain businesses and sought approval from Competition Commission of India (CCI) for the same, as per a disclosure.
Both SHARE and Asmitha operate in multiple states across India, including Andhra Pradesh and Telangana (collectively referred to as AP).
Under the agreement signed by the two companies, Asmitha's non-AP business (that is, its business in states other than AP) will be demerged and transferred to SHARE, and SHARE will demerge and transfer its AP business to Asmitha, as a going concern.
As a result of the proposed combination, the non-AP business of SHARE and Asmitha will be held by SHARE, and the AP business of SHARE and Asmitha will be held by Asmitha.
“The parties believe that the proposed combination does not give rise to competition concerns regardless of the product/relevant market definition used for the purpose of the filing,” noted the CCI disclosure.
Separate email queries sent to the two companies seeking further information on the aforesaid development did not elicit any response by the time of filing this article.
SHARE Microfin is a non-banking financial company-micro finance institution (NBFC-MFI) registered with the reserve Bank of India (RBI). SHARE provides financial and support services to the marginalised sections of the society, particularly the financially excluded women in rural and semi-urban regions across India.
Asmitha Microfin is also an NBFC-MFI registered with the RBI. It is involved in providing financial and related support services to women to enable them to set up micro enterprises across the country.