India's Centrum Group is looking to raise 5 billion rupees to boost its lending business as it is exploring entering the asset reconstruction and insurance business, Mint reported March 14, citing Jaspal Bindra, executive chairman.
Bindra said the company is trying to understand the process of asset reconstruction, particularly what sectors it will go into, Bindra said. For the moment, the group is experimenting with one or two smaller transactions, the chairman added.
Insurance is also "an area that we are very keen to explore further," Bindra said. The company has an insurance broking business, as well as lending businesses such as microfinance and affordable housing finance.
Centrum is looking to raise 5 billion rupees for the lending business, potentially raising the money from public markets, but there is also interest from private equity, Bindra said. He added that he expects to close fiscal 2018 with a loan book of 10 billion rupees.
The company may also do an IPO for its foreign exchange business, which is its most mature business, Bindra said. Any capital market fundraising or IPO will be in the second half of 2018, he added.
Centrum Capital Ltd. is the flagship company of Centrum Group.
As of March 13, US$1 was equivalent to 64.76 Indian rupees.
