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Indian private lender ICICI to invest into Midland Microfin

By Vinu Lal

11:00, 1 October 2021

Close-up of a hand using a calculator
ICICI Bank acquires minor stake in Midland Microfin – Photo: Shutterstock

Indian private bank ICICI Bank has entered into an agreement to acquire 4.5 million shares in the non-banking financial company (NBFC) Midland Microfin for about INR524.2m ($7.07m) in cash, the lender said in a stock exchange notice on Friday.

The lender would be acquiring the stake at a share premium of INR106.27 a share. After the investment, ICICI Bank would hold 7.3% of the total share capital of Midland, according to the notice.

Midland Microfin allotted the shares to ICICI Bank on 30 September. Since the shareholding acquired by ICICI is below 10%, regulatory approval is not required, it added.

Midland's financials

The non-deposit taking NBFC was incorporated on 27 May 1988. For the financial year 2020-21, the company posted a net profit of INR146.3m.

The firm has posted a turnover of INR1.92bn for the same year, a 6.6% rise from INR1.8bn recorded the previous year. For the financial year 2018-19, the company had posted a turnover of INR1.16bn.

"ICICI Bank, its subsidiaries and its associates in the normal course of business may have business dealings with Midland at an arm’s length," said the exchange note.


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Aviator investment

In May 2020, Mauritius-based Aviator Emerging Market Fund invested $3.1m in Punjab-based Midland Microfin, a firm that provides funds for financial and social empowerment of women. The NBFC provides funds by way of business loans, according to a report in

Aviator Emerging Market fund invested in Midland Microfin through a combination of non-convertible debentures and external commercial borrowings.

Shares of ICICI Bank closed 1.21% lower at INR692.35 by the close of Friday’s session on the National Stock Exchange.

ICICI Bank, termed as the second-largest private sector bank in India in terms of assets, by stock analyst Geojit Securities, saw its net interest income climb up 17.8% year-on-year for the first quarter of the financial year 2021-22.

Read More: India’s main tax collection at five-month high in September

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