Gold loan NBFC Manappuram Finance on Friday said its board has approved an additional equity infusion of up to ₹250 crore into its subsidiary Asirvad Micro Finance (AMFL) in one or more tranches.
Objective of the infused fund
“The fund infused by the company in AMFL is to support its capex and working capital requirements,” Manappuram Finance said in an exchange filing. The Kerala-based lender currently holds 98.31% stake in Asirvad; post the proposed infusion, its shareholding will rise to 98.56%.
New appointment
The board also approved the appointment of Buvanesh Tharashankar as Group Chief Financial Officer with effect from December 26. Tharashankar has previously served as CFO at RBL Bank and Jana Small Finance Bank and spent over 26 years with Citibank in India and overseas, largely in the Gulf region, in senior finance roles. He has been designated as a key managerial personnel. The company clarified that its existing CFO, Bindu AL, will continue in her role and remain a key managerial personnel.
Separately, the board cleared a proposal to enhance the company’s borrowing limits. Subject to shareholders’ approval, Manappuram Finance will be allowed to raise up to ₹75,000 crore through loans and debt instruments such as debentures and bonds, with security to be created on its movable and immovable assets as required.
Shares of Manappuram Finance closed 1% lower at ₹313.50 on the NSE.