An article recently appeared on the Financial Express website claiming that SHARE Microfin, a microfinance institution (MFI) based in Hyberabad, is in talks with Asmitha Microfin, another MFI based in Hyberbad, regarding a possible merger.
The article cites unspecified industry watchers as saying that the possible merger is aimed at boosting valuations before SHARE Microfin’s public issue. The spokesperson of SHARE Microfin declined to comment on the possible merger.
According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, SHARE microfin reported a gross loan portfolio of USD 490 million, total assets of USD 577 million and 2.4 million active borrowers as of 2009. On the other hand, Asmitha Microfin Ltd reported a gross loan portfolio of USD 315 million, total assets of USD 389 million and 1.3 million active borrowers as of 2009.
About SHARE Microfin:
SHARE Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. It began operations in 1989 as a nonprofit. It has been a non-bank financial institution since 2000. It offers loans primarily to women as well as training and consulting. As of March 31, 2010, it has USD 576.9 million in assets, a gross loan portfolio of USD 490 million, 990 branches, 2.3 million active borrowers, a return on assets of 5.5 percent and return on equity of 45.18 percent.
About Asmitha Microfin Ltd:
Asmitha Microfin Limited is a microfinance institution (MFI) based in Hyderabad, India. It offers collateral-free group and individual loans to women. It was founded in 2002 and operates primarily in rural areas. It is registered as a public limited company. In October 2008, MicroCapital reported the purchase of a minority stake in Asmitha on the part of BlueOrchard Private Equity, a fund of BlueOrchard Microfinance Investment Managers. According to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, the MFI reported a gross loan portfolio of USD 315 million, total assets of 389 million and 1.3 million active borrowers as of 2009.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source Article: Financial Express: SHARE Microfin in talks with Asmitha for merger
http://www.financialexpress.com/news/SHARE-Microfin-in-talks-with-Asmitha-for-merger/692995/
[2] MicroCapital Universe: Asmitha Microfin Ltd:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asmitha+Microfin+Limited
[3] MicroCapital Universe: SHARE Microfin Limited:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SHARE+Microfin+Limited
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