Kerala finance firm attracts Rs.707 mn foreign investmentSeptember 4th, 2008 - 5:45 pm ICT by IANS
Kochi, Sep 4 (IANS) Kerala-based non-banking financial company (NBFC) Manappuram Group will receive fresh capital infusion of Rs.707.52 million from four overseas private equity firms, a top official said here. Alchemy Ashmore of the UK will invest Rs.320 million in Manappuram General Finance and Leasing Ltd (Magfil), and Manappuram Finance (Tamil Nadu) Ltd (Mafit),
The US-based Granite Hill, through its Mauritius arm, will invest Rs.42 million in Magfil and Rs.18 million in Mafit.
Sequoia Capital Growth Investments, a private American equity fund managed by Sequoia Capital, will inject Rs.114.63 million in Magfil and Rs.49.13 million in Mafit.
Hudson Equity Holdings Ltd of the US, a fund managed by India Equity Partners, will also be infusing an identical amount in both the Kerala-based NBFCs.
Manappuram Group chairman V.P. Nandakumar told reporters here the company will put up the equity infusion proposal for shareholders’ approval at the annual general meeting Sep 25.
“We expect to complete the process of equity infusion by 10th October,” said Nandakumar.
He said the group enjoyed credit lines aggregating more than Rs.10 billion from various banks, and expected to enhance these by another Rs.5 billion during this year.
“We had recently raised Rs.700 million from the debt market. This new equity infusion will help us to improve our short-term rating to A1+ from the present level of A1. We also expect that the improved rating will help the company to bring down the cost of borrowings,” the chairman added.