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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
Founded2005 (2005)[1]
Defunct18 December 2018 (2018-12-18)[2]
FateMerged with IDFC Bank to form IDFC First Bank[3]
SuccessorIDFC First Bank
HeadquartersOne Indiabulls Centre, Senapati Bapat Marg, Lower Parel (West),
Mumbai, Maharashtra
,
India[4]
Area served
India
Key people
RevenueIncrease ₹3,628 crore (US$530.49 million)[5] (2018)
Increase ₹454 crore (US$66.38 million)[5] (2018)
Increase ₹327 crore (US$47.81 million)[5] (2018)
AUMIncrease ₹26,997 crore (US$3.95 billion) (2018)
Total assetsIncrease ₹23,981 crore (US$3.51 billion)[5] (2018)
Total equityIncrease ₹2,549 crore (US$372.72 million)[5] (2018)
OwnersCloverdell Investment Ltd (34.29%)
Government of Singapore (9.0%)[5]
Subsidiaries
  • Capital First Home Finance Limited
  • Capital First Securities Limited
  • Capital First Commodities Limited[5]
RatingAAA[5]
Websitewww.capitalfirst.com

Capital First Ltd. was an Indian non-bank financial institution providing debt financing to small entrepreneurs, MSMEs and consumers. In December 2018, it was merged into IDFC Bank to form IDFC First Bank. The company was listed on the NSE and BSE prior to the merger.[6][7][8]

History

[edit]

Founded in 2005 as a part of Future Group, the company became Future Capital Holdings in December 2006.[1] The company listed on the Indian stock exchanges in January 2008 following an initial public offering.[9] Between 2008 and 2010, the company launched businesses including real estate development financing, corporate credit, private equity, asset management, foreign exchange, retail broking, mall management, wealth management and property services.[10]

In 2010, V. Vaidyanathan, then MD and CEO of ICICI Prudential Life, was appointed as the vice-chairman and MD of Future Capital Holdings. Vaidyanathan obtained a 10% stake in the company as part of the deal.[11][12] The company later exited legacy businesses of forex, wealth, and broking, and reduced wholesale lending sharply.[13]

In 2012, Warburg Pincus agreed to buy a majority stake in the company for ₹8.10 billion (US$151.58 million), including ₹1 billion by way of preferential allotment. An open offer was made to the public in line with SEBI guidelines. The board was reconstituted and the company was renamed Capital First.[14][15]

In 2013–14, the company received the Housing Finance Company (HFC) License from the 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 funding from PE players and Qualified Institutional Placements (QIP).[16][17] Financial institutions like Government Pension Fund Global (Norway), Jupiter Asset Management, Ashburton Limited, DNB Asset Management (Norway), Nomura Asset Management, BNP Paribas Asset Management invested in Capital First during this phase through secondary market, becoming shareholders of the company.[18][19][20]

On 13 January 2018, IDFC Bank and Capital First announced a merger in a joint press release. IDFC Bank issued 139 shares for every 10 shares of Capital First, with Vaidyanathan taking over as the MD and CEO of the combined bank. The merger completed in December 2018.[21][22]

References

[edit]
  1. ^ a b "Warburg Pincus in talks to acquire Future Capital Holdings". The Economic Times. 11 May 2012. Retrieved 16 December 2024.
  2. ^ Shah, Saumil. "Capital First & IDFC Bank: Made For Each Other". BW Businessworld. Retrieved 16 March 2019.
  3. ^ "IDFC Bank and Capital First announce completion of merger". thehindubusinessline. 18 December 2018. Retrieved 19 December 2018.
  4. ^ "Corporate Office". Capital First. Retrieved 16 March 2019.
  5. ^ a b c d e f g h "Annual Report 2017-18" (PDF). Capital First. Retrieved 16 March 2019.
  6. ^ "Capital First Ltd. Annual Report 2018" (PDF).
  7. ^ "Dun & Bradstreet – Company Profile" (PDF). www.dnb.co.in. Archived (PDF) from the original on 15 November 2017. Retrieved 11 July 2017.
  8. ^ nazerry. "Vaidyanathan Vembu — Enterprise Asia". Enterprise Asia. Retrieved 9 July 2017.
  9. ^ "Future Capital IPO fully subscribed". Business Standard. Retrieved 16 December 2024.
  10. ^ "Future Capital IPO Details – Date, Prospectus, Allotment, Listing, Reviews & Status". Chittorgarh. Retrieved 9 July 2017.
  11. ^ "Vaidyanathan appointed vice chairman and MD of Future Capital". The Economic Times. 1 August 2010. Retrieved 16 December 2024.
  12. ^ "V. Vaidyanathan takes wing with a $17 million stake in a star NBFC". Business Today. 3 July 2012. Retrieved 16 December 2024.
  13. ^ 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)
  14. ^ "Capital First Limited | Warburg Pincus". Warburg Pincus. Archived from the original on 5 May 2016. Retrieved 9 July 2017.
  15. ^ "V. Vaidyanathan takes wing with a $17 million stake in a star NBFC". www.businesstoday.in. 3 July 2012. Retrieved 9 July 2017.
  16. ^ "Warburg Pincus' Capital First raises ₹ 340 cr from GIC affiliate". The Hindu Business Line. 11 November 2016. Retrieved 9 July 2017.
  17. ^ "Capital First raises ₹ 178 cr via preferential issue". The Economic Times. 5 March 2014. Retrieved 9 July 2017.
  18. ^ PTI (24 March 2015). "Capital First raises Rs 300 crore through qualified institutional placement route". The Economic Times. Retrieved 9 July 2017.
  19. ^ 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.
  20. ^ "Capital First yearly profit after tax up 44%". www.moneylife.in. Retrieved 9 July 2017.
  21. ^ "Capital First Ltd. Profile – The Economic Times". economictimes.indiatimes.com. Retrieved 9 July 2017.
  22. ^ "Capital First merges with IDFC Bank to create IDFC First Bank". moneycontrol. 18 December 2018. Retrieved 20 December 2018.
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