PE players infuse Rs 108 crore in Manappuram Group

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Kochi, Sept 4 : Kerala-based NBFC Manappuram Group has infused fresh capital to the tune of Rs 108 crore from PE players, company sources said.

The investments in the form of compulsorily convertible preference shares will boost the short term credit rating of the company to the highest level of A1+, VP Nandakumar, chairman of the group, told reporters. Manappuram is targeting a credit line of Rs 1,000 crore for the current fiscal, he added.

The group will also merge the listed group company Manappuram General Finance and Leasing Limited (MAGFIL) with Manappuram Finance Tamil Nadu Limited (MAFIT). Post merger and post PE fund infusion, the promoters will hold 44% of the total shares.

UK-based Alchemy Ashmore is expected to invest nearly Rs 40 crore while US-based Granite Hill joins with nearly Rs 6 crore. Existing PE investors Sequoia Capital Growth Investments and Hudson Equity Holding will bring in additional investments. Currently Sequoia and Hudson hold approximately 11.5% in both companies.

Manappuram has at present 500 branches spread across 13 states. It has also been granted Authorised Dealer Category II Licence by the Reserve Bank of India (RBI) for dealing in foreign exchange.