Capital First acquires strategic stake in Village Financial

Leading private lender Capital First acquires 7 per cent stake in micro-finance company Village Financial Services Limited. The stock experiences volatility on Tuesday.

Village Financial Services is registered as a Non-Banking Finance Company - MFI with the RBI. With a major presence in eastern states, the company provides micro-finance services to women borrowers. For FY18, the company had a turnover of Rs. 113.88 crore. 

Capital First has signed an agreement to acquire 31,25,000 equity shares at Rs. 38 each from the promoters of Village Financial Services Limited. This strategic investment is for approx. 7.03 per cent of the share capital of the company, with a cost of acquisition of Rs. 15 crore.

On Tuesday, the stock experienced volatility in the early hours of trade. The stock gained after 8 days of consecutive fall. It also hit a 52-week low of Rs. 507.50. At 10:55 hours, Capital First was trading at Rs. 514.65 per share, up 0.49 per cent, when the benchmark index BSE Sensex was at 35,328.23, up by 0.18 per cent.