Jacob Ballas invests Rs 200 crore in Religare arm

MUMBAI: Private equity firm Jacob Ballas Capital India has invested Rs 200 crore in Religare Enterprises' non-banking financial services arm Religare Finvest. While a Religare statement announcing the investment did not specify the quantum of stake Jacob Ballas has acquired, people familiar with the matter said, the spend is for 5% holding, valuing Religare Finvest at nearly Rs 4,000 crore.

The fund infusion is in the form of compulsory convertible preference shares, and is the second equity investment in Religare Finvest in rapid succession after Avigo Capital in November invested 150 crore for 3-4% stake in the company.

"Private equity investors are showing interest in our business model. We expect to close the book size at 15,000 crore," said a senior executive from Religare.

Religare Finvest provides debt capital to MSMEs in the form of loans against property, working capital loans, loans against plant and machinery, vehicles and construction equipment and loan against marketable securities, among others. The company has a loan book size of Rs 11,380 crore as on September-end.

New Delhi-based Jacob Ballas Capital has made its investment from Jacob Ballas India Fund III LLC. International institutions such as insurance companies, sovereign wealth funds, pension funds, banks, funds of funds and reputed international family investment offices are investors in the fund.