Auto ancillary company Precision Camshafts (PCL) Ltd has acquired Nashik-based precision component maker MEMCO Engineering (MEMCO) for an undisclosed sum. This synergy will help PCL further strengthen its industry leadership and diversify into a new product range.
US-based investment management company S-Squared Capital has committed an investment of Rs.20 cr. in Vatsalya Dental, which runs a chain of hybrid dental clinics in Bengaluru. The company will invest the amount in multiple tranches over the next two years. Vatsalya Dental plans to use the funds to launch five specialised centres focused on paediatric dentistry in Bengaluru and other parts of southern India by the end of 2019.
Bengaluru-based school finance company Varthana has raised $3 million in funding from the Michael & Susan Dell Foundation to expand its School Transformation Program (STP). The program is aimed at improving the quality of learning in private schools by lending them credit facilities.
A surge in liquidity, regulatory arbitrage, and the crippled state of banks converged to make the non-banking finance company (NBFC) business model a success with equity investors latching on to any business that would reflect the Indian financial services growth without its baggage of bad loans. Life has come a full circle with premium attached to banks shrinking while NBFCs gaining traction. There is huge opportunity in the NBFC space given that the credit-to-GDP ratio is low. Historically, NBFCs were a neglected lot in the financial services. Once the regulations tightened, they found it difficult to access funds. NBFCs were dependent on banks with 70 per cent of their total funds coming from banks. After the global financial crisis caught them on the wrong foot, they began to tap the market for funds. The surge in liquidity at mutual funds and insurers’ investments in bonds has made funding a better proposition. Apart from credit bureau score, NBFCs are using credit underwriting processes such as profiling a customer based on mobile usage, social activities and information available on the social media. They are investing in faster turnaround time of loan applications. The balance sheet of the NBFC sector expanded by 14.5 per cent during 2016-17. Loans and advances increased by 16.4 per cent and investments increased by 11.9 per cent in March 2017. Despite the growth they managed their asset quality better than banks. Gross bad loans of the industry are down to 4.4 per cent in March 2017, from 4.9 per cent in September 2016 when banks in general witnessed a rise. Net NPAs as a percentage of total advances also declined from 2.7 per cent to 2.3 per cent.
Transaction processing company, Paynear Solutions, has acquired Singapore-based GoSwiff International Pvt Ltd. The value of the transactions has not been disclosed. With this acquisition, Hyderabad-based Paynear Solutions has now got a presence in 16 countries across Asia, Europe, Africa and West Asia. In India, Paynear has a presence in about 20 cities.