Mumbai, Feb 14, 2015: Manappuram Finance Ltd., the leading gold loan NBFC, has concluded its takeover of Asirvad Micro Finance Pvt. Ltd on February 12, 2015. With this, the company has taken an important step towards diversifying its business with the objective of becoming a financial company offering a wide range of products and services.
Manappuram Finance has acquired 71.14% of the fully diluted existing equity capital of the Company in an all cash transaction at a cost of Rs. 48.63 crores. The Company will infuse a further amount of Rs. 63.0 crores in to Asirvad as equity capital, taking its total stake to 84.98% of the enlarged and fully diluted equity capital of its new subsidiary.
Sharing his thoughts on the development, Mr. V. P. Nandakumar, MD & CEO, Manappuram Finance Limited said, “The microfinance sector has made a strong comeback in recent months and, with a stable regulatory environment in place, prospects for the future are bright. In the coming quarters, we expect that microfinance will contribute significantly to the growth of our company along with our other new businesses like housing finance and vehicle finance.”
Asirvad Micro Finance Pvt. Ltd. Is an NBFC–MFI based in Chennai. The company conducts its business of micro lending from 115 branches spread across the states of Tamil Nadu, Kerala and Karnataka.
