SIDBI plans to raise Rs 5,000 crore via rights issue next financial year
The rest is held by other Public Sector Banks (PSBs) and institutions. He said the loan book of the entity is close to Rs 5 lakh crore and expressed hope to close the financial year at around Rs 5.2 lakh crore.
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02:11 PM IST
Small Industries Development Bank of India (SIDBI) on Tuesday said it plans to raise Rs 5,000 crore from rights issues next financial year to fund business growth. The refinancing entity for SME finance is witnessing strong credit growth and to further grow the business, capital would be required, he said.
The bank is looking to mobilise Rs 5,000 crore from rights issues in the next fiscal, SIDBI chairman and managing director S Ramann said on the sidelines of the launch of a credit programme for Jan Aushadhi Kendras here. He said the government is the biggest shareholder and SIDBI has approached them requesting their participation in the rights issue, he said. The government of India holds a 20.85 per cent stake as of March 31, 2023. Besides this, the State Bank of India owns 15.65 per cent, while the share of Life Insurance Corporation of India (LIC) stood at 13.33 per cent as of March 31, 2023.
The rest is held by other Public Sector Banks (PSBs) and institutions. He said the loan book of the entity is close to Rs 5 lakh crore and expressed hope to close the financial year at around Rs 5.2 lakh crore. Currently, SIDBI has 17 per cent loan exposure of the total loan given to MSMEs in the country. Ramann said the Fund of Funds for Startups (FFS) has committed Rs 9,500 crore for the promotion of new ventures in the country.
FFS was unveiled by the Prime Minister on January 16, 2016, in line with the Startup India Action Plan. It had approved a corpus of Rs 10,000 crore for contribution to various Alternative Investment Funds (AIFs) registered with SEBI. Introduced with a focused objective of supporting the development and growth of innovation-driven enterprises, FFS facilitates funding needs for startups through participation in the capital of SEBI-registered AIFs. The commitment of Rs 9,500 crore has led to over 100 AIFs raising Rs 56,000 crore more, he said.
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