Bain’s India Lender Plans To Double Portfolio Ahead Of Listing
(Bloomberg) -- Tyger Capital Pvt Ltd., the Indian shadow lender Bain Capital bought from the Adani Group, is seeking to double its loan portfolio as it prepares to list on India's stock exchanges in the next fiscal year.Â
Tyger plans to grow its loan book to 100 billion rupees ($1.2 billion) across its small business, farm equipment and commercial vehicle sectors, Chief Executive Officer Gaurav Gupta said in an interview in Mumbai last week.Â
“There is enough opportunity to go below or above the loan sizes we currently make to all the segments, and we will go deeper into each of these segments with the adjacent strategies,” he said.
Bain Capital agreed to buy a majority stake in the lender from billionaire Gautam Adani's family last July, infusing about 10 billion rupees of fresh capital to enhance its growth plans.Â
India's non-bank finance companies, or NBFCs, grew by targeting customers underserved by traditional banks. The sector's loans grew roughly 17% in the year through March 2024 to 46.6 trillion rupees according to ICRA ratings, the local arm of Moody's Corp.
Tyger's growth plans come amid a challenging time for shadow lenders. The Reserve Bank of India has told the financial sector to pull back from unsecured personal lending, and also increased risk weightings for bank loans to shadow lenders. Many are seeking new sources of capital as a result. Â
That includes offshore bonds, and Tyger could test the market with a $20 million or $30 million sale later in the year, Gupta said.Â
“Increased regulatory supervision only benefits the sector,” said Gupta. “It ensures we are compliant in form and spirit,” he said, adding that the lender has tweaked its underwriting to account for the increasing number of personal and consumer loans its customers take out.
The lender, which currently has 175 branches in semi-urban and rural areas, plans to open another 50 or 60 outlets and add nearly 700 employees to its current total of 3,000 staff, he said.
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
