Altegrais is set to acquire a $1.8 billion loan agency for $150 million, it was announced by Altegres board members.
The new lender will operate the company’s consumer lending and lending to businesses, according to a statement.
“The acquisition will further strengthen Altegares financial position as we move into the new era,” Altegas board chairman Pankaj Bajpai said.
“We are committed to working with our customers and lenders to make Altegias products and services even better.”
The loan agency will work with Altegard’s existing customers and will continue to develop its business.
The company had been run for more than a decade by former President J.P. Srinivasan.
It was restructured in July last year after Srinivasa Thampi left the helm.
The loan to be made by Altes lender will be in the form of a convertible bond.
The total cost of the deal is $150.8 million.
Altegs board has been looking to consolidate its loan portfolio to boost profitability in the coming financial year.
Altes total loan portfolio was $1,200.5 billion in 2017.
The group had a total loan to GDP of $3.4 trillion in 2016-17.
The board has asked the finance ministry to review the government’s loan guarantee policy.