Manappuram Finance to raise Rs400 cr

Manappuram Finance to raise Rs400 cr
PTI
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First Published: Fri, Oct 23 2009. 11 14 AM IST
Updated: Fri, Oct 23 2009. 11 14 AM IST
Mumbai: “Manappuram General Finance and Leasing Ltd (MAGFIL), the only listed gold loan company in India, is planning to raise Rs400 crore before the end of this financial year through short-term debt instruments (commercial papers),” a top company official has said.
“According to our fund raising plan, we have already raised Rs125 crore from banks and mutual funds. Our target is to raise Rs400 crore before the financial year ending through commercial papers,” chairman and managing director of MAGFIL, V.P. Nandakumar said.
Many leading private equity (PE) firms have evinced interest in the company which has already received FDI of Rs140.75 crore in the last fiscal from leading PE firms like Sequoia Capital, India Equity Partners (Hudson Equity Holdings)and Ashmore Alchemy which amounts to 35% of stake holding in the company.
“Considering the growth rate of the company, we may require some funding next year. Many parties have shown interests,” Nandakumar said, refusing to divulge more details.
According to Nandakumar, Indians together own 20,000 tonnes of gold which amounts to two third of the country’s GDP and the total size of mortgaged gold is 1,500 tonnes. MAGFIL is managing 15.6 tonnes of mortgaged gold assets.
“It means our business has a vast area to grow, where as the risk factor is very less,” Nandakumar said.
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First Published: Fri, Oct 23 2009. 11 14 AM IST