Manappuram Finance to buy 85% in ISFC

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Kochi | Published: July 4, 2018 2:33:25 AM

Kerala-based NBFC Manappuram Finance on Tuesday announced its intention to acquire the Hyderabad based NBFC, Indian School Finance Company (ISFC) , which is engaged in extending loans to educational institutions, teachers and other education sector loans, including purchase of buses.

Manappuram , economyManappuram has agreed to enter into a binding agreements with ISFC and its shareholders, for acquiring 85.39% stake by way of secondary purchase from the existing financial investors, Gray Matters Capital and Caspian, the company said.

Kerala-based NBFC Manappuram Finance on Tuesday announced its intention to acquire the Hyderabad based NBFC, Indian School Finance Company (ISFC) , which is engaged in extending loans to educational institutions, teachers and other education sector loans, including purchase of buses.

Manappuram has agreed to enter into a binding agreements with ISFC and its shareholders, for acquiring 85.39% stake by way of secondary purchase from the existing financial investors, Gray Matters Capital and Caspian, the company said.

ISFC has assets under management (AUM) of Rs 522.59 crore and shareholders’ funds of Rs90 crore (including compulsorily convertible instruments) as of March 31, 2018. The NBFC has served over 2.6 million students through approximately 4500+ institutions since its inception, ISFC has developed strong underwriting and risk management processes for lending to the ecosystem of educational institutions. It has a country-wide footprint spanning 116 locations across 15 states in India with an employee base of over 300.

In a statement to the media, VP Nandakumar, MD & CEO of Manappuram Finance said, “As a niche player, we expect ISFC’s business to be both scalable and profitable. We believe this acquisition will enable Manappuram Finance to grow faster and thereby help us achieve greater diversification.” Manappuram also informed the exchanges that the aggregate cost of acquisition is `212.20 crore.
In a separate press release Gray Matters Capital (GMC), an Atlanta based investor announced that it has decided to sell its entire 81.92% stake ISFC. Caspian, an impact focused investor which has advised ISFC since its inception will also exit the company, selling its 3.48% stake.

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