Capital First 5.02

Capital First Limited, listed in NSE and BSE, is a leading Indian financial institution, specializing in providing debt financing to MSMEs and Consumers in India.

Between 2008 to 2010, the Company was largely in the business of wholesale Financing, asset management, and had JVs in Foreign Exchange and retail equity Broking. Between 2010 to 2012, Mr. Vaidyanathan acquired a stake in the company, changed the business model to retail, and executed a Management Buyout of the company by securing equity backing from Warburg Pincus for Rs. 810 Crores and changed the name of the company to Capital First. In the process the company got new shareholders, reconstituted a new board and started new retail business lines.

The Market Cap of Capital First has increased from Rs. 7.90 billion ($121 mn) on March 31 2012 (FY ending prior to the buyout) to Rs. 76.28 bn on March 31, 2017. ($1.17 bn).

The founding theme of Capital First is that financing India's 50 million MSMEs and its emerging middle class, with a differentiated model, based on new technologies provides a large and unique opportunity.

Unlike traditional models of financing, Capital First has successfully created new models to finance MSMEs and Indian consumers, in the hitherto unbanked and under-penetrated segments. The Company uses a differentiated model, based on new technologies and deep analytics. With this differentiated approach, Capital First has financed over 4.0 million customers in more than 220 locations across India and built loan assets of Rs 198.24 Bn (USD 3.05 bn) as on March 31st, 2017, with 93% of its loan assets in the Consumer & MSME financing space. Capital First has maintained high asset quality over the years. The Gross and Net NPA of the Company is 0.95% and 0.30% respectively as of 31 March 2017 on 120 dpd NPA recognition basis.

The company enjoys the highest long term credit rating of AAA. Capital First is focused on building an institution on strong pillars of ethics, values and high corporate governance.