Raising Capital for Future Expansion, SATYA MicroCapital Secures Rs. 300 Crore through Rights Issue
SATYA MicroCapital Limited, a registered Non-Banking Financial Company (NBFC-MFI) with the Reserve Bank of India, has announced a rights issue of shares up to Rs. 300 Crore for its existing shareholders. This strategic fund-raising initiative is a significant step towards SATYA's mission of fostering financial inclusion at scale.
The proceeds from the rights issue will be primarily used for expanding the company’s loan portfolio, upgrading technology infrastructure, and enhancing operational capabilities. SATYA aims to increase credit disbursement to meet growing demand, enhance digital and operational platforms for better service delivery, and strengthen internal processes and infrastructure.
The funds will also be used to target rural and semi-urban communities traditionally underserved by formal financial institutions. By extending its reach into these areas, SATYA intends to deepen geographic outreach and further financial inclusion.
The rights issue carries implications for SATYA’s capital structure and future growth prospects. By strengthening its capital base, SATYA will be able to comply with regulatory requirements and support larger lending volumes. This move is expected to enable the company to scale its microfinance business sustainably while maintaining responsible lending practices.
SATYA's strategic positioning is to capture the growth potential in the Indian microfinance industry. The company, which has a robust network of 830+ branches nationwide, is committed to ESG principles and measurable social impact. SATYY provides collateral-free credit to micro and small entrepreneurs, with a strong focus on women-led enterprises.
Mr. Vivek Tiwari, MD & CEO of SATYA MicroCapital, expressed gratitude towards existing shareholders for their confidence in the company. He stated that the microfinance sector continues to show tremendous potential, and SATYA is well-positioned to capitalize on emerging opportunities. Mr. Tiwari further added that the rights issue reflects SATYA's long-term vision to scale operations and deliver value to all stakeholders.
The capital infusion aims to further strengthen SATYA's capital adequacy, enhance lending capacity, and deepen geographic outreach to marginalized communities. SATYA is shaping a future where economic empowerment begins at the grassroots, building resilience, enabling sustainable income generation, and paving the way for long-term prosperity for those who are traditionally excluded from mainstream financial services.
In summary, the Rs. 300 crore rights issue is a strategic fund-raising initiative aimed at fueling SATYA MicroCapital’s growth trajectory with a strong focus on financial inclusion and operational strengthening in the near future. The company's mission is to be a catalyst for the socio-economic upliftment and economic empowerment of 10 million households by 2030. With its experienced management team and commitment to responsible lending practices, SATYA is poised to make a significant impact in the lives of millions of underserved individuals across India.
[1] SATYA MicroCapital Limited Website: https://www.satya.co.in/ [2] SATYA MicroCapital Limited Annual Report 2020-2021: https://www.satya.co.in/sites/default/files/2021-06/SATYA%20MicroCapital%20Annual%20Report%202020-21.pdf [5] SATYA MicroCapital Limited Press Release: https://www.satya.co.in/sites/default/files/2021-08/SATYA%20MicroCapital%20Limited%20Announces%20Rights%20Issue%20of%20Shares%20up%20to%20Rs.%20300%20Crore%20for%20Existing%20Shareholders.pdf
- The funds raised through the rights issue will be utilized to not only expand the loan portfolio but also upgrade technology infrastructure, indicating SATYA's dedication to modernizing its operations.
- Alongside the expansion of its loan portfolio, SATYA aims to extend its reach into rural and semi-urban communities, which are underserved by formal financial institutions, as part of its mission to boost financial inclusion.
- The capital infusion, in addition to strengthening the company's capital adequacy, will enable SATYA to increase its lending capacity and further its commitment to providing collateral-free credit in a socially responsible manner, especially for women-led businesses and microenterprises in India.
