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Capital First Ltd.

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Capital First Ltd.
FormerlyFuture Capital Holdings
Company typePublic
BSE: 532938
NSE: CAPF
ISININE688I01017
IndustryNon-bank financial institution
Founded2008 (2008)
FounderV. Vaidyanathan Edit this on Wikidata
Defunct18 December 2018 (2018-12-18)[1]
FateMerged with IDFC Bank to form IDFC First Bank[2]
SuccessorIDFC First Bank
HeadquartersOne Indiabulls Centre, Senapati Bapat Marg, Lower Parel (West),
Mumbai, Maharashtra
,
India[3]
Area served
India
Key people
RevenueIncrease ₹3,628.2517 crore (US$430 million)[4] (2018)
Increase ₹454.5678 crore (US$54 million)[4] (2018)
Increase ₹327.0101 crore (US$39 million)[4] (2018)
AUMIncrease ₹26,997 crore (US$3.2 billion) (2018)
Total assetsIncrease ₹23,981.620 crore (US$2.9 billion)[4] (2018)
Total equityIncrease ₹2,549.9674 crore (US$310 million)[4] (2018)
OwnersCloverdell Investment Ltd (34.29%)
Government of Singapore (9.0%)[4]
Subsidiaries
  • Capital First Home Finance Limited
  • Capital First Securities Limited
  • Capital First Commodities Limited[4]
RatingAAA[4]
Websitewww.capitalfirst.com

Capital First Ltd. was an Indian non-bank financial institution providing debt financing to small entrepreneurs, MSMEs (Micro, Small and Medium Enterprises) and Indian consumers. Capital First was founded in 2012 by V. Vaidyanathan.

The company was listed on NSE and BSE. The market cap of the company grew from ₹ 7.81 billion (31 March 2012) to ₹60.96 billion (31 March 2018)[5][6][7]

In December 2018 NBFC Capital First and private sector lender IDFC Bank has announced the completion of their merger, creating a combined loan asset book of ₹1.03 lakh crore for the merged entity. The merged entity to be called IDFC First Bank, subject to shareholders’ approval.[8]

Company history

The company was initially listed on the Indian Stock exchanges in January 2008 as Future Capital Holdings. Between 2008 and 2010, the company launched a number of diverse businesses including financing real estate developers, corporate credit, private equity, asset management, foreign exchange business (through joint venture arrangement), retail broking business (through joint venture arrangement), mall management, wealth management and property services.[9]

In 2010, V Vaidyanathan, then MD and CEO of ICICI Prudential Life, concluded an agreement to acquire 10% of the equity of the company. Financing India's 50 million MSMEs and India’s emerging middle class, with a differentiated model, based on new technologies, became the new founding theme of the company. In line with this theme, the company exited legacy businesses of Forex, wealth, and broking, and reduced wholesale lending sharply.[10] Based on the above, he succeeded in securing equity backing of ₹8.10 billion from Warburg Pincus to buy out the other shareholders, including ₹ 1.00 billion by way of preferential allotment. An open offer was made to the public in line with SEBI guidelines. The board was reconstituted. A new brand, Capital First, was created.[11][12]

In 2013–14, the company received the Housing Finance Company (HFC) License from National Housing Bank (NHB) for its wholly owned subsidiary Capital First Home Finance Limited. Capital First also launched new products like SME business loans, personal loans, and affordable housing, and scaled up the existing businesses.

Between 2014 and 2017, Capital First raised significant[clarification needed] funding through investments from PE players and Qualified Institutional Placements (QIP).[13][14] Reputed financial institutions across the world like Government Pension Fund Global (Norway), Jupiter Asset Management, Ashburton Limited, DNB Asset management (Norway), Nomura Asset Management, BNP Paribas Asset Management have invested in Capital First during this phase through secondary market and became shareholders of the company.[15][16]

The market capitalization of the company increased from ₹ 7.81 billion as on 31 March 2012, to ₹ 60.96 billion as on 31 March 2018. The company has been able to maintain a high asset quality. As of 31 March 2018, the gross and net NPA of the company stood at 1.62% and 1.00% respectively. Capital First Ltd. has posted a net profit of ₹ 3.28 billion (USD 37 million) for the financial year ended on 31 March 2018.

In line with V. Vaidyanathan's objective and long-term plan of getting a banking license, on January 13, 2018, in a joint press release issued by IDFC Bank and Capital First, they announced a merger. IDFC Bank is to issue 139 shares for every 10 shares of Capital First and Mr. Vaidyanathan will take over as the MD and CEO of the combined bank.[17][18]

Products offered

Capital First provides debt financing services to entrepreneurs, Micro, Small, and Medium Enterprises; and Indian consumers, with a focus on the emerging middle class. It provides financing ranging from as low as ₹ 10,000 to ₹ 20 million for a wide range of tenures ranging from as low as 6 months to up to 15 years. It offers long-term loans secured by property, two wheeler loans, and consumer durable loans in over 225 locations across the country.[19]

Corporate Social Responsibility

Capital First Ltd. has been actively contributing to the society in the form of its CSR activities. The company’s flagship CSR program and involves providing financial assistance to students who on their own merits, have been able to secure admission to selected management programs, but happen to belong to economically weaker section of the society and are therefore, unable to afford the expenses for the programs. Such students are awarded scholarship under the Capital First Scholarship Program.[20]

Awards and accolades

  • “Best BFSI Brand, 2018” by Economic Times at ET-Edge Conference.[21]
  • “Financial Company of The Year, 2018” award at VC Circle Awards 2018.[22]
  • “Outstanding Corporate Transformation Award, 2018”[23]
  • “Digitalist Award” by Mint SAP, 2017, at Mumbai.[24]
  • “Entrepreneur of The Year, 2017” award at the Asia Pacific Entrepreneur Award (APEA) held in Delhi[25]
  • “Outstanding contribution to Financial Inclusion, India, 2017” from Capital Finance International, London[26]
  • In March 2017, Capital First Limited received the "Asia Innovator Of The Year" award from Honorary Ministers Shri Arun Jaitley and Shri Manoj Sinha at the CNBC - India Business Leader Awards in Delhi[27]
  • “Asia Pacific Entrepreneur Award (APEA) - Outstanding Category”, 2016, award at the held in Delhi[28]
  • The company featured in India’s Top 500 Companies & Corporates by Dun and Bradstreet in 2017 and was ranked 341 based on total income[29]
  • In December 2016, Capital First Limited received "India’s Most Trusted Financial Brands" award by World Consulting & Research Corporation in Mumbai.[30]
  • In November 2016, Capital First debuted in ET 500 "India’s Future Ready Companies with rank of 466.[31]
  • The Company received the Asset Triple A Treasury, Trade and Risk Management Awards in Hong Kong, 2016.

References

  1. ^ Shah, Saumil. "Capital First & IDFC Bank: Made For Each Other". BW Businessworld. Retrieved 16 March 2019.
  2. ^ "IDFC Bank and Capital First announce completion of merger". thehindubusinessline. 18 December 2018. Retrieved 19 December 2018.
  3. ^ "Corporate Office". Capital First. Retrieved 16 March 2019.
  4. ^ a b c d e f g h "Annual Report 2017-18" (PDF). Capital First. Retrieved 16 March 2019.
  5. ^ "Capital First Ltd. Annual Report 2018" (PDF).
  6. ^ "Dun & Bradstreet - Company Profile" (PDF). www.dnb.co.in. Retrieved 11 July 2017.{{cite web}}: CS1 maint: url-status (link)
  7. ^ nazerry. "Vaidyanathan Vembu — Enterprise Asia". Enterprise Asia. Retrieved 9 July 2017.
  8. ^ "Capital First merges with IDFC Bank to create IDFC First Bank". moneycontrol. Retrieved 20 December 2018.
  9. ^ "Future Capital IPO Details - Date, Prospectus, Allotment, Listing, Reviews & Status". Chittorgarh. Retrieved 9 July 2017.
  10. ^ Business, Outlook. ""If I can see it, then I can do it. If I just believe it, there's nothing to it" | Outlook Business". www.outlookbusiness.com. Retrieved 9 July 2017. {{cite news}}: |last= has generic name (help)
  11. ^ "Capital First Limited | Warburg Pincus". Warburg Pincus. Archived from the original on 5 May 2016. Retrieved 9 July 2017.
  12. ^ "V. Vaidyanathan takes wing with a $17 million stake in a star NBFC". www.businesstoday.in. Retrieved 9 July 2017.
  13. ^ Bureau, Our (11 November 2016). "Warburg Pincus' Capital First raises ₹ 340 cr from GIC affiliate". The Hindu Business Line. Retrieved 9 July 2017. {{cite news}}: |last= has generic name (help)
  14. ^ Bureau, ET (5 March 2014). "Capital First raises ₹ 178 cr via preferential issue". The Economic Times. Retrieved 9 July 2017. {{cite news}}: |last= has generic name (help)
  15. ^ PTI (24 March 2015). "Capital First raises Rs 300 crore through qualified institutional placement route". The Economic Times. Retrieved 9 July 2017.
  16. ^ Dhanjal, Swaraj Singh (11 November 2016). "Capital First to raise Rs340 crore from Singapore sovereign wealth fund GIC". www.livemint.com/. Retrieved 9 July 2017.
  17. ^ "Capital First yearly profit after tax up 44%". www.moneylife.in. Retrieved 9 July 2017.
  18. ^ "Capital First Ltd. Profile - The Economic Times". economictimes.indiatimes.com. Retrieved 9 July 2017.
  19. ^ "Company Profile & Executives - Capital First Ltd. - Wall Street Journal". quotes.wsj.com. Retrieved 9 July 2017.
  20. ^ "Capital First | CSR Activities". capitalfirst.com. Retrieved 9 July 2017.
  21. ^ "Capital First 'Best BFSI Brand of the Year 2018' Award". Retrieved 9 July 2017.
  22. ^ "Capital First 'Financial Company of the Year' Award". Retrieved 9 July 2017.
  23. ^ "Capital First receives 'Outstanding Corporate Transformation award by Capital First International". Retrieved 9 July 2017.
  24. ^ "Capital First 'Digitalist Award' Award". Retrieved 9 July 2017.
  25. ^ "Capital First 'Entrepreneur of the Year, 2017' Award". Retrieved 9 July 2017.
  26. ^ "Capital First 'Outstanding contribution to Financial Inclusion' Award". Retrieved 9 July 2017.
  27. ^ "Capital First receives "Asia Innovator of the Year"". Retrieved 9 July 2017.
  28. ^ "Capital First 'Asia Pacific Entrepreneur' Award". Retrieved 9 July 2017.
  29. ^ "India's Top 500 Companies" (PDF). Dun&Bradstreet. Retrieved 9 July 2017.
  30. ^ "India's Most Trusted Financial Brands". WCRC Leaders Asia. Retrieved 9 July 2017.
  31. ^ "ET 500 Companies List 2016". Economic Times.
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