Clix plans to raise ~2,500 cr through NCDS
Clix Capital, which is in discussion with Lakshmi Vilas Bank (LVB) for a possible merger, is planning to raise up to ~2,500 crore through debentures.
The enabling resolution for issuing non-convertible debentures (NCDS) was placed before shareholders for approval at its annual general meeting (AGM) on September 30, 2020, according to a filing with the NSE.
The company’s NCDS carry “A+” rating with stable outlook from CARE Ratings. Clix plans to raise funds via private placement of debentures in one or more tranches. It, however, did not elaborate on the purpose of raising funds.
In response to Business Standard’s queries on fundraising and its usage, a Clix spokesperson said, “We continue to engage with the newly constituted board of Lakshmi Vilas Bank. The discussions and negotiations are ongoing at this point.”
LVB is an ailing small private bank under the Reserve Bank of India’s (RBI’S) prompt corrective action (PCA) regime.
Clix Capital Services (formerly GE Money Financial Services Pvt Ltd) was set up under the GE group for consumer financing, auto leasing, corporate lending and health care equipment financing.
In March 2016, the GE group entered into a management buy-in arrangement with Pramod Bhasin and Anil Chawla, former top executives at GE India, to exit its Indian commercial finance business. The management buy-in by Bhasin and Chawla was backed by funding from private equity firm AION Capital Partners.
According to its filing with the NSE, the company earned a profit after tax (PAT) of ~20.75 crore during the financial year 2019-20 against ~7.41 crore in the previous financial year. Total income had gone up to ~506.64 crore from ~354.56 crore a year ago.
It transferred ~4.26 crore to the statutory reserve during the year against ~1.53 crore last year. The board of directors did not recommend any interim or final dividend during the financial year.
Its assets under management (AUM) rose by 6.77 per cent to ~3,157.97 crore as on March 31, 2020, compared to ~2,957.67 crore as on March 31 2019.
The company continues to strengthen its provisioning norms beyond the RBI regulations by provisioning based on experience and emerging trends.
The company is a non-banking financial company (NBFC) with focus on lending to micro, small and medium enterprises (MSMES) and retail borrowers. It expanded its business in 2019-20 and launched products based on technology, analytics and robust risk management.