Asset Strategy and Growth Post-Merger
Background of Capital First
SECTION 1: BACKGROUND
The Company was first listed on Stock Exchanges in January 2008. Between 2010 to 2012, Mr Vaidyanathan acquired a stake in the company and executed a
Management Buyout (MBO) of the Company with equity backing of Rs. 810 Crore from Warburg Pincus, and created a new brand and entity called Capital First. As part
of the MBO, the company raised fresh equity, reconstituted a new Board and got new shareholders, including open offer to public. A brief history of the company is as
follows:
2008-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
The Company was largely in the business of Wholesale Financing, PE, Asset Management, Foreign Exchange and Retail Equity Broking.
The total AUM of the Company was Rs. 935 crores of which Retail AUM was 10%, Rs. 94 crores.
Mr. V Vaidyanathan joined the Company and prepared the ground for executing a Management Buyout by taking significant corporate actions including divesting
Forex JV to JV partner, merging a subsidiary NBFC with itself, by winding down other non core businesses and launching retail businesses in the Company. The
Company launched technology driven financial businesses for the consumer and SME segments. The Retail loan book crossed Rs. 700 crores by March 2011. The
Company presented this as proof of concept to many global private equity players for Buyout.
The company continued to present the concept to prospective PE players throughout the year. The Company undertook additional corporate actions and further
wound down non-core business subsidiaries and launched more retail financing businesses. The concept, model and volume of retail financing businesses
gained traction and reached to Rs. 3,660 crores, 44% of the overall AUM.
Mr. Vaidyanathan secured equity backing of Rs. 810 billion from Warburg Pincus for an MBO and thus Capital First was founded. As part of the transaction an open
offer was launched, the Company raised Rs. 100 Cr of fresh equity capital, a new Board was reconstituted and a new brand and entity "Capital First" was created.
The Company further raised Rs. 178 Cr as fresh equity at Rs. 153/ share. It acquired HFC license from NHB and launched housing finance business under its wholly
owned subsidiary.
Company's Assets under Management reached Rs. ~12,000 Cr and the number of customers financed since inception crossed 10 lacs. The Company raised Rs. 300
Crores through QIP at Rs. 390 per share from marquee foreign and domestic investors.
The Company received recognition as "Business Today - India's most Valuable Companies 2015" and "Dun & Bradstreet - India's
Company scrip was included in S&P BSE 500 Index.
top 500 Companies, 2015". The
Company's Assets under Management reached ~ Rs. 20,000 Cr and the number of customers financed since inception crossed 4.0 million. The Company raised
fresh equity capital of Rs. 340 Cr from GIC, Singapore through preferential allotment @ Rs. 712 per share. The Company received recognition as "CNBC Asia -
Innovative Company of the Year, IBLA, 2017", "Economic Times - 500 India's Future Ready Companies 2016" and "Fortune India's Next 500 Companies, 2016".
The Company's Asset Under Management touch ~Rs. 27,000 Cr and number of customers financed crossed 6.0 million. The Company received "Best BFSI Brand
Award 2018" at The Economic Times Best BFSI Brand Awards 2018 and "Financial Services Company of the Year 2018" at VC Circle Awards 2018. In January 2018, the
Company announced the merger with IDFC Bank subject to regulatory approvals.
The Company received awards for Most Outstanding Corporate transformation from CFI Awards and Mr. Vaidyanathan was awarded Most Inspirational Management Buyout
2018 for founding Capital First
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IDFC FIRST
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