Private-equity firm Jacob Ballas will invest Rs 200 crore in Religare Enterprises's non-banking financial services arm, Religare Finvest Ltd, to enable the firm expand its business.
Religare Finvest provides debt capital to micro, small and medium enterprises (MSMEs) as loans against property, working capital loans, loans against plant and machinery, vehicles and construction equipment and loan against marketable securities among others.
The investment would be in the form of compulsory convertible preference shares and would be made by NYLIM Jacob Ballas India Fund III LLC, Religare said in a statement on Monday.
This will be the second equity investment in the company, after Avigo Capital invested Rs150 crore in November 2011.
Religare Finvest currently has more than 25,000 MSME accounts, with a loan book of Rs11,380 crore as on 30 September 2011.
Jacob Ballas Fund is advised by Jacob Ballas Capital India Pvt Ltd, a private equity advisor based in New Delhi. Investors in the funds comprise insurance companies, sovereign wealth funds, pension funds, banks, funds of funds as well as reputed international family investment offices.