Capital First Ltd.

Capital First Ltd (NSE: CAPF) is a financial Institution in India providing debt financing to small entrepreneurs, MSMEs (Micro, Small and Medium Enterprises) and Indian consumers. Capital First was founded in 2012 by V. Vaidyanathan. The company is listed on NSE and BSE. In the last 5 years the market cap of the company has grown from Rs. 7.81 billion (March 31, 2012) to Rs. 76.28 billion (March 31, 2017)^[2][3]

Company History

The company was initially listed on the Indian Stock exchanges in January 2008 as Future Capital Holdings. Between 2008-2010, the company launched a number of diverse businesses including financing Real Estate Developers, Corporate Credit, Private Equity, Asset Management, Foreign Exchange Business (through Joint Venture arrangement), Retail Broking Business (through Joint Venture arrangement), Mall Management Business, Wealth Management and Property Services.^[4]

In 2010, V Vaidyanathan, then CEO of ICICI Prudential Life concluded an agreement to acquire 10% of the equity of the company. Financing India’s 50 million MSMEs and India’s emerging middle class, with a differentiated model, based on new technologies became the new founding theme of the company. In line with this theme, the company exited legacy businesses of Forex, wealth, broking, and reduced wholesale lending sharply.^[5] Based on the above, he succeeded in securing equity backing of INR. 8.10 billion from Warburg Pincus to buyout the other shareholders, including INR. 1.00 Billion by way of preferential allotment. An Open Offer was made to the public in line with SEBI guidelines. The Board was reconstituted. A new brand Capital First was created.^[6][7]

In 2013-14, the Company received the Housing Finance Company (HFC) License from National Housing Bank (NHB) for its wholly owned subsidiary Capital First Home Finance Limited. Capital First also launched new products like SME Business Loans, personal loans, affordable housing and scaled up the existing businesses.

Between 2014 and 2017, Capital First has raised significant funding through investments from PE players and Qualified Institutional Placements (QIP).^[8][9] Reputed financial institutions across the world like Government Pension Fund Global (Norway), Jupiter Asset Management, Ashburton Limited, DNB Asset management (Norway), Nomura Asset Management, BNP Paribas Asset Management have invested in Capital First during this phase through secondary market and became shareholders of the company.^[10][11]

The market capitalization of the company has increased from INR. 7.81 billion (USD 120 Mn) as on 31 March 2012, to INR. 76.28 billion (USD 1.17 Bn) as on 31 March 2017. The Company has been able to maintain a high asset quality. As of March 31, 2017, the Gross and Net NPA of the Company stood at 0.95% and 0.30% respectively. Capital First Ltd. has posted a net profit of Rs. 2.39 billion (USD 37 Mn) for the financial year ended on 31 March 2017, an increase of 44% from the previous financial year.^[12][13]

Products offered

Capital First provides debt financing services to entrepreneurs, Micro, Small, and Medium Enterprises; and Indian consumers, with a focus on the emerging middle class. It provides financing ranging from as low as ₹ 10,000 to ₹ 20 million for a wide range of tenures ranging from as low as 6 months to up to 15 years. It offers long-term loans secured by property, two wheeler loans, and consumer durable loans in 222 locations across the country.^[14]

Corporate Social Responsibility

Capital First Ltd. has been actively contributing to the society in the form of its CSR activities. The company’s flagship CSR program and involves providing financial assistance to students who on their own merits, have been able to secure admission to selected management programs, but happen to belong to economically weaker section of the society and are therefore, unable to afford the expenses for the programs. Such students are awarded scholarship under the Capital First Scholarship Program.

Awards and Accolades

• In March 2017, Capital First Limited received the “Asia Innovator Of The Year” award from Honorary Ministers Shri Arun Jaitley and Shri Manoj Sinha at the CNBC - India Business Leader Awards in Delhi^[15]
• The company featured in India’s Top 500 Companies & Corporates by Dun and Bradstreet in 2017 and was ranked 341 based on total income^[16]
• In December 2016, Capital First Limited received “India’s Most Trusted Financial Brands” award by World Consulting & Research Corporation in Mumbai.^[17]
• In November 2016, Capital First debuted in ET 500 “India’s Future Ready Companies with rank of 466.
• Capital First was awarded “Giants of Tomorrow” by Fortune magazine in their Annual event held on 19th August 2016 at New Delhi.^[18]
• The Company received the Asset Triple A Treasury, Trade and Risk Management Awards in Hong Kong, 2016.

References

1. ↑ "Capital First Ltd." (PDF). 
2. ↑ "Dun & Bradstreet - Company Profile" (PDF). www.dnb.co.in. Retrieved 2017-07-11. 
3. ↑ nazerry. "Vaidyanathan Vembu — Enterprise Asia". Enterprise Asia. Retrieved 2017-07-09. 
4. ↑ "Capital First Ltd. Company Profile | EMIS". www.emis.com. Retrieved 2017-07-09. 
5. ↑ Business, Outlook. ""If I can see it, then I can do it. If I just believe it, there’s nothing to it" | Outlook Business". www.outlookbusiness.com. Retrieved 2017-07-09. 
6. ↑ "Capital First Limited | Warburg Pincus". Warburg Pincus. Retrieved 2017-07-09. 
7. ↑ "V. Vaidyanathan takes wing with a $17 million stake in a star NBFC". www.businesstoday.in. Retrieved 2017-07-09. 
8. ↑ Bureau, Our (2016-11-11). "Warburg Pincus’ Capital First raises ₹340 cr from GIC affiliate". The Hindu Business Line. Retrieved 2017-07-09. 
9. ↑ Bureau, Our (2014-03-21). "Capital First raises ₹178 cr via preferential equity". The Hindu Business Line. Retrieved 2017-07-09. 
10. ↑ PTI (2015-03-24). "Capital First raises Rs 300 crore through qualified institutional placement route". The Economic Times. Retrieved 2017-07-09. 
11. ↑ Dhanjal, Swaraj Singh (2016-11-11). "Capital First to raise Rs340 crore from Singapore sovereign wealth fund GIC". www.livemint.com/. Retrieved 2017-07-09. 
12. ↑ "Capital First yearly profit after tax up 44%". www.moneylife.in. Retrieved 2017-07-09. 
13. ↑ "Capital First Ltd. Profile - The Economic Times". economictimes.indiatimes.com. Retrieved 2017-07-09. 
14. ↑ "532938.IN Company Profile & Executives - Capital First Ltd. - Wall Street Journal". quotes.wsj.com. Retrieved 2017-07-09. 
15. ↑ www.exchange4media.com. "CNBC-TV18 honors excellence with 12th edition of India Business Leader Awards (IBLA)". Retrieved 2017-07-09. 
16. ↑ "BT 500: India's Most Valuable Companies- Business News". www.businesstoday.in. Retrieved 2017-07-09. 
17. ↑ "India’s Most Trusted Financial Brands". WCRC Leaders Asia. Retrieved 2017-07-09. 
18. ↑ "Fortune India's Largest Companies".