Investing in Indias financial sector: NBFC firm Visagar sees stake buying by promoter group
Prior to this, the UK-based asset management company Alliance Global Blanco was in talks to enter the Indian financial sector by acquiring a stake in Visagar.
India's financial services sector is growing rapidly, driven by government initiatives on financial inclusion and rising incomes. As the sector promises excellent prospects to invest in and deliver alpha returns, financial services firm Visagar Financial Services has announced that promoter group Sagar Portfolio Services has acquired 30 lakh shares of the company.
The company in a statement said that the promoter group has also hinted at increasing its stake further to 10 per cent.
Prior to this, the UK-based asset management company Alliance Global Blanco was in talks to enter the Indian financial sector by acquiring a stake in Visagar.
Incorporated in 1994, Visagar has a robust portfolio that spans investment in listed and unlisted securities across diverse sectors.
It recently parked funds in two entities from the manufacturing space -- Treveni Enterprises and Maharashtra Corporation. While Triveni Enterprises is a leading supplier of steel products in the domestic market, Maharashtra Corporation is in the business of commodity trading and real estate.
Notably, the Indian economy is undergoing a healthy rebound from the COVID-19 pandemic and non-banking financial companies (NBFCs) are playing a pivotal role in propelling the growth. NBFCs serve as vital sources of funds for investments and infrastructure projects, especially for small and medium enterprises, thus contributing significantly to the overall growth.
Even in the face of an economic upswing and continuous foreign investments, Indian NBFCs have stood their ground, proving their mettle. Driven by a stepped-up approach to adopting digital technologies post-pandemic, the financial services sector is undergoing a significant transformation.
According to a report by JM Financial, NBFCs exhibited a strong performance in the April-June quarter across all the parameters, driven mainly by retail consumer and SME loans.
The sector is expected to grow further with a rise in economic activities and businesses eyeing expansions to increase their participation in the country's growth.
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