Incofin Investment Management is pleased to announce a full exit from Annapurna Finance, India with its Rural Impulse Fund II (RIF II). Together with SIDBI Venture Capital Incofin decided to fully sell a total 12,5 % holding for approximately Rs 90 crore, putting the valuation of India’s eight largest microfinance company at Rs 850 crore.
Incofin and SIDBI will sell their investments to other existing investors, including Oman India Joint Investment Fund II (OIJIF II). Incofin has a 4.13 % stake and the sale of the shares will realize Rs 30 crore. SIDBI Venture will receive approximately Rs 60 crore for its 8.35 %.
“We have already partially exited last year. The residual stake will be sold in 2018,” says Aditya Bhandari, Regional Co-Director Asia, Incofin. Incofin invested with RIF II Rs 13-crore in the microfinance firm in June 2012. Annapurna Finance, which was earlier known as Annapurna Microfinance, got the NBFC-MFI licence from Reserve Bank of India in 2013.
“We invested in the first round of capital expansion. Annapurna has grown strongly since then. Also, RIF II is a closed ended fund, which is nearing its maturity,” says Aditya Bhandari. Incofin invested in three companies in 2017 and is exploring opportunities in NBFCs in the rural, MSME and impact space.
Annapurna, an MFI with rural focus, has recently raised Rs 155 crore fresh equity from OIJIF, which is backed by State Bank of India and State General Reserve Fund of Oman. The investment helped OIJIF acquire 20.86 % in the country’s eighth largest MFI in terms of loans outstanding at the end of 2017.
Annapurna Finance serves more than 1.2 million borrowers through a network of more than 400 branches across 14 states. Its investors include Small Industries Development Bank of India, Belgian Investment Organization, DCB Bank, Oikocredit, Women’s World banking and Bamboo Capital Partners.