Kissht Preferential Issue: Rs 832 Cr Raised, 75% to Si Creva
The Kissht preferential issue raised Rs 832 Cr from 34 investors, including MIT and Axis funds. At least 75% funds lending arm Si Creva by December.
By Avinash Mishra, Business Correspondent
2 min read
Quick Take
- The Kissht preferential issue raised Rs 832 Cr at Rs 314.11 per share.
- Shares went to 34 investors, including MIT, Axis and HDFC funds, on October 23.
- At least 75% will go to lending arm Si Creva Capital Services by December.
Mumbai-based Kissht has raised Rs 832 Cr by issuing 2.65 crore new shares to 34 investors, with the shares allotted on October 23.
The price was Rs 314.11 per share. That is well above the Rs 171 price at which Kissht sold shares in its May IPO. The company disclosed the terms in an exchange filing.
Where the Kissht preferential issue money goes
At least 75% of the money will go to Si Creva Capital Services, the group’s lending arm. On October 28, the board approved putting Rs 624 Cr into Si Creva. That investment should finish by the end of December.
Si Creva holds the group’s NBFC licence and makes its loans. More capital there lets Kissht lend more without raising its own borrowing costs.
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From Rs 171 IPO to Rs 314 preferential price
The 34 buyers include the Massachusetts Institute of Technology, Axis Mutual Fund and HDFC Mutual Fund. The 2.65 crore new shares lift Kissht’s share count by about 15%.
Kissht is profitable. In the June quarter it earned Rs 95 Cr, up 59% from a year earlier. Revenue rose 45% to Rs 670 Cr.
Kissht listed in May after an IPO that raised Rs 926 Cr. It sells personal loans, business loans and loans against property.
What this means for you
If you hold Kissht shares, your stake is now spread across about 15% more shares after this issue. Watch the December quarter to see if the fresh capital in Si Creva lifts loan growth and profit.
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Disclaimer: This article is for information only and is not investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. Please speak to a SEBI-registered advisor before investing.