Orient Global invests $76 mn in India Info arm

Singapore-based investment institution Orient Global will acquire a 22.5 per cent stake in India Infoline’s consumer finance subsidiary India Infoline Investment Services (IIIS for around $76.7 million (Rs 300 crore)). The capital will be primarily utilised for the expansion of IIIS’s subsidiaries — Moneyline, which is in the business of personal and auto loans, and India Infoline Housing Finance, which is in the business of home loans.

Moneyline will make use of the group’s expansive network of 600 branches to provide credit to a large segment of the populace which currently does not have access to organised credit. Moneyline plans for an active presence in 60 cities by the end of 2008. “With a combination of decentralised distribution and service, supported by centralised risk management and back office operations, Moneyline aims to leverage technology to reduce costs, deliver superior service and offer a pleasant overall borrowing experience to the customer,” it said.

India Infoline Housing Finance plans to provide support for the growth of housing for the middle class in India as the 10th Five-Year Plan estimates a shortage of 22 million dwelling units in India.

Story continues below this ad

Orient Global founder and chairman Richard Chandler commented: “Orient Global is delighted to support the development of India’s financial services sector by providing capital to India Infoline Investment Services. It is enthusiastic about the role that India Infoline Investment Services can play in extending the availability of financial services, and thereby accelerating growth and prosperity in India,” he said.

Echoing similar reaction, India Infoline CMD Nirmal Jain said, “India Infoline Investment Services is delighted to have the support of Orient Global. The company has demonstrated a long-term commitment to India.”