Mumbai: Disha Microfin Ltd has restructured its business as it prepares to launch its small finance bank (SFB) operations, said two people aware of the development.
Backed by India Value Fund Advisors (IVFA), Disha Microfin is part of Fincare Business Services Ltd, which acts as a holding company and owns other businesses such as Future Financial Services Pvt. Ltd (FFSPL), a microfinance institution; Lok Management Services, a business correspondent services firm; and India Finserve Advisors, a financial and management advisory services firm.
“They (Fincare) have consolidated all the various microfinance businesses that they were operating under various entities. As part of this exercise, Disha, which will house the SFB operations, has bought out the entire microfinance business being managed under FFSPL in a slump sale for around Rs120 crore,” said one of the two people mentioned above, requesting anonymity, as they are not authorized to speak to the media.
Also as part of the restructuring, IVFA’s shareholding in both Disha and FFSPL has been transferred to Fincare Business Services, which will act as the holding company for the SFB operations under Disha, through a share swap, he said.
IVFA held around 74% stake in Disha…