Kochi, Sep 4 (UNI) The Kerala-based NBFC Manappuram Group will infuse fresh capital to the tune of Rs 108 crore from UK and US-based private equity firms to fund its expansion plans.
Talking to reporters here last night, Group Chairman V P Nandakumar said the UK-based 'Alchemy Ashmore', a joint venture between Alchemy and Ashmore, will invest about Rs 32 crore in Manappuram General Finance and Leasing Limited (MAGFIL) and Manappuram Finance (Tamil Nadu) Limited (MAFIT).
Alchemy Asmore's Mauritius based investment vehicle 'AA Development Capital India Fund' will invest Rs 22.4 crore and Rs 9.6 crore in MAGFIL and MAFIT, respectively.
He said the US-based private equity fund 'Granite Hill' would be investing Rs 4.2 crore in MAGFIL and Rs 1.8 crore in MAFIT.
The investments in the form of compulsorily convertible preference shares will be converted to equity at a minimum price of Rs 166.2 per share, he added.
Additionally the US-based Sequoia Capital Growth Investments would be infusing Rs 11.4 crore in MAGFIL and Rs 4.9 crore in MAFIT. Hudson Equity Holding Limited, a fund managed by India equity Partners.
would also be investing identical amounts in both the companies.
Mr Nandakumar said the management believes that the equity infusion would help the company to improve its short-term rating to A1+ from the present A1 and the improved rating would help to bring down the cost of borrowings.
He said the company would increase its presence across the country by opening 150 more branches taking the total network to around 700.
The company was also expecting to increase its asset under managemnt (AUM), which was Rs 800 crore in 2007-08, to Rs 1800 crore in the current fiscal, he said.
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