HDFC Ergo General Insurance Strengthens Position with Strategic Investment in Capri Global Capital's QIP

In a significant development reflecting confidence in the financial services sector, HDFC Ergo General Insurance Limited Shares participated in Capri Global Capital's recently concluded Qualified Institutions Placement (QIP) of ₹2,000 crore. This investment underscores the attractiveness of Capri Global's business model and growth trajectory, as well as demonstrating HDFC Ergo's commitment to strategic investments in promising financial institutions.

The QIP, which saw participation from a diverse pool of top-tier domestic and global institutions, including ace investors Prashant Jain and Madhu Kela, marks a pivotal moment for Capri Global Capital. The offering, its first in nearly a decade, witnessed strong demand, enabling the company to raise substantial capital for future expansion across its key lending segments, including MSMEs, affordable housing, and gold loans.

Apart from HDFC Ergo General Insurance Limited Shares, other prominent participants included Quant Mutual Fund, Abakkus Asset Management, BlackRock, Societe Generale – ODI, Allspring Global Investments, ICICI Prudential Life Insurance, HDFC Life Insurance, ICICI Lombard General Insurance, SBI General Insurance, PNB MetLife Insurance, and TATA AIF. The breadth of participation highlights the widespread confidence in Capri Global's business strategy, execution capabilities, and growth outlook.

According to Capri Global, the funds raised through the QIP are expected to significantly bolster the company’s capital adequacy, enabling it to capitalize on growth opportunities, expand its geographical presence, invest in AI and data science capabilities, and further diversify its borrowings. This strategic infusion of capital is poised to accelerate Capri Global’s growth trajectory and strengthen its position as a leading NBFC focused on serving underserved segments.

Rajesh Sharma, Managing Director of Capri Global Capital, emphasized that the successful QIP marks a significant milestone in the company's growth journey. He stated that the capital raised would enable the company to drive inclusive credit access, enhance productivity and efficiency, and build a resilient portfolio. Sharma also expressed appreciation for the continued trust of existing shareholders and welcomed the new shareholders, reinforcing the company's commitment to delivering robust financial performance and creating long-term value for all stakeholders.

This investment by HDFC Ergo General Insurance Limited Shares aligns with its broader investment strategy of supporting companies that demonstrate strong growth potential and contribute to the development of the financial services ecosystem. Capri Global's focus on underserved segments and its commitment to responsible lending resonate with HDFC Ergo's values, making this a mutually beneficial partnership.

Capri Global Capital, operating under the brand “Capri Loans,” has been actively expanding its footprint and diversifying its lending portfolio in recent years. The QIP will provide the necessary capital to further accelerate these efforts and solidify its position as a key player in the NBFC sector. With a strengthened capital base and the backing of prominent institutional investors like HDFC Ergo, Capri Global is well-positioned for continued success and value creation.

The successful completion of the QIP and the participation of HDFC Ergo General Insurance Limited Shares signal a positive outlook for Capri Global Capital. It also serves as a vote of confidence for the NBFC sector as a whole, demonstrating the continued attractiveness of well-managed and strategically focused financial institutions. Investors will be watching closely as Capri Global deploys the raised capital and executes its growth plans, with expectations of strong financial performance and continued value creation.