Turning Leaf Asset Management to invest in Dhanvarsha Finvest Ltd

Dhanvarsha Finvest Limited (the "Company") today announced a significant development where private equity funds managed by Turning Leaf Asset Management (TLAM) have entered into a definitive agreement to acquire 21.5% stake by infusing USD 8.5 million in the Company. As part of the transaction, the promoter group Wilson Holding Private Limited will also simultaneously infuse USD 6 million equivalent in INR into the Company and convert INR 103 million of existing debt into equity in the Company. Subject to customary closing conditions, post infusion Dhanvarsha will boast of net-worth in excess of INR 1.5 billion, which is a substantial milestone for the Company.

Commenting on the announcement Mr. Rakesh Sethi, Chairperson, Dhanvarsha Finvest Limited said "Dhanvarsha was formed with a vision to empower, with financial access, the unserved and underserved entrepreneurs of India. The mission is to not just achieve broad-based financial inclusion in this great nation of ours. It is to also achieve financial inclusion with a greater social purpose - to build social capital. We are proud to support the Government's mission in providing capital and much needed confidence to the MSME sector. We are excited to partner with Turning Leaf in this journey and look forward to an exciting path ahead. With this transaction, the company's net worth will be bolstered materially that will help us scale up AUM considerably in the MSME space. Furthermore, we expect rating agencies and company's lenders to welcome this sizeable combined capital infusion in Dhanvarsha.

Mr. C.V. Kedarnath, CEO, Turning Leaf Asset Management said: "Dhanvarsha Finvest Ltd is a highly strategic investment for TLAM as we continue to expand our portfolio exposure in the financial services space. Dhanvarsha as a tech enabled finance company (TEFC) combined with its strong credit and origination engine in the MSME sector is an ideal company that will propel the industry to greater heights. With a high calibre management team, coupled with its robust collections and risk monitoring platform, it will offer investors attractive level of returns in a key segment that will have a positive immediate impact on businesses."

Mr. Rohanjeet Singh Juneja and Mr. Karan Neale Desai, Joint Managing Directors, Dhanvarsha Finvest Limited said: "The entire management team is excited to have an investor like Turning Leaf Asset Management who understands and appreciates our vision of financial inclusion. This investment is a testament to the dedication of our outstanding promoter group and employees who have built this Company. We look forward to take the Company further on its vision and growth plans."

The transaction is expected to close in the next few months, subject to customary closing conditions.

Shares of Dhanvarsha Finvest Ltd was last trading in BSE at Rs.94.15 as compared to the previous close of Rs. 85.6. The total number of shares traded during the day was 2747 in over 63 trades.

The stock hit an intraday high of Rs. 94.15 and intraday low of 90. The net turnover during the day was Rs. 257501.

Source : Equity Bulls

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