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Warburg Pincus-controlled Capital First raises $48M through QIP

Capital First Ltd (formerly Future Capital) has completed a qualified institutional placement (QIP) raising Rs 300 crore ($48 million). The issue, which was opened on March 20, closed on Tuesday, as per a stock market disclosure.

The firm issued 7.69 million shares at a price of Rs 390 each as part of the QIP.

The company said its capital adequacy ratio after the issue is 23.5 per cent.

Private equity firm Warburg Pincus, which acquired a majority stake in the company by buying the stake held by Future Group over two years ago, held 71.56 per cent in the company as of December 31, 2014. After the QIP, its holding has shrunk to 65.5 per cent, as per VCCircle estimates.

Capital First is a specialised MSME and consumer financing company. It also offers loans for housing, two-wheelers and consumer durable products to entry and mid-level salaried employees. The company has financed over 1 million customers to date and as of December 31, 2015, its assets under management crossed Rs 11,600 crore.

(Edited by Joby Puthuparampil Johnson)

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