Satin Creditcare Network Limited Successfully Completes Preferential Allotment Of Rs. 225 Crores

New Delhi, January 27, 2022 (GNI): Satin Creditcare Network Limited, a leading microfinance institution, has secured Rs 225 Crores by the way of

• Allotment of 30,76,916 (Thirty Lakh Seventy Six-Thousand Nine Hundred and Sixteen) equity shares of face value of INR 10/- (Indian Rupees Ten only) each (“Equity Shares”) fully paid-up, for cash at an issue price of INR 81.25/- (Indian Rupees Eighty-One and Twenty Five Paisa only) per equity share (including premium of INR 71.25 per equity share).
• Allotment of 2,46,15,384 (Two Crores Forty-Six Lakh Fifteen Thousand Three Hundred and Eighty-Four) fully convertible warrants (“Warrants”) at an issue price of INR 81.25/- (Indian Rupees Eighty-One and Twenty-Five Paisa only) per Warrant, convertible at the option of the Warrant holder, in one or more tranches, within eighteen (18) months from the date of allotment into equivalent number of fully paid-up equity shares of face value of INR 10/ each of the Company, on a preferential basis.

The Company has allotted a total of 30,76,916 shares (i.e. 7,69,229 Shares each) to a group of investors namely Aarti Agrifeeds LLP, Adesh Agricare LLP, Adesh Agrifarm LLP and Trimudra Trade & Holdings Private Limited.

The Company has also allotted a total of 2,46,15,384 warrants (i.e. 1,23,07,692 warrants each) to Trishashna Holdings & Investments Private Limited (Promoter & Promoter Group) & Florintree Ventures LLP (Non-Promoter) at a convertible option in one or more tranches, within eighteen (18) months from the date of allotment into equivalent number of fully paid-up equity shares.

Satin will use the funds as growth capital to boost its position in the lending ecosystem and to accelerate its strategic priorities.

Commenting on the allotment, Mr. HP Singh, Chairman & Managing Director of Satin Creditcare Network Limited, said.

“We are pleased to welcome the marquee investors who strongly trust in the growth and potential of the Company. We at Satin are very humbled by the opportunity, as this investment will not only help us to meet our medium-term goals but also help in accelerating our long-term strategic priorities, and driving the Company’s growth. This fundraise of INR 225 Crores will help us recuperate in these uncertain times. These investments reaffirm the faith the market has in Satin even during these challenging times that it is well poised to deliver profitable growth over the long term while focusing on portfolio quality.

We at Satin are well-capitalized and this fundraise will further help us augment our capital. We believe that our healthy financials complemented with a strong recovery path makes us well-positioned for achieving sustained growth momentum in the coming years as we continue to focus on business growth in diversified sectors while maintaining our leadership position in the sector.”

About Satin Creditcare Network Limited (SCNL or Satin) is a leading microfinance institution (MFI) in the country with presence in 23 states & union territories and around 83,000 villages. The company mission is to be a leading micro financial institution by providing a comprehensive range of products and services for the financially under-served community. The company also

aims to lead in gender empowerment by leveraging on technology and innovation that forge sustainable strategic partnerships.

The company also offers a bouquet of financial products in the Non‐MFI segment (comprising of loans to MSMEs), a housing finance subsidiary, and business correspondent services and similar services to other financial Institutions. Taraashna Financial Services Limited is a business correspondent company and a 100% subsidiary of SCNL. In April 2017, SCNL incorporated a wholly owned housing finance subsidiary (Satin Housing Finance Limited or “SHFL”) for providing loans to the affordable housing segment. In January 2019, received separate NBFC license to commence MSME business, Satin Finserv Limited. As of September 2021, SCNL had 1,279 branches and a headcount of 12,910 across 23 states and union territories serving around 29 lakh clients.