Manappuram buys microfinance company Asirvad
Manappuram acquired 71.14% stake in Asirvad for `48.63 crore in an all cash transaction
Mumbai: Kerala-based gold loan company Manappuram Finance Ltd, on Friday, said it has acquired a majority stake in Chennai based micro-finance company Asirvad Micro Finance Pvt Ltd as it seeks to diversify into different financial businesses.
Manappuram acquired 71.14% stake in Asirvad for ₹ 48.63 crore in an all cash transaction. It plans to invest a further ₹ 63 crore in into the micro-finance company to take its stake to 84.98%, the company said.
The deal was concluded on Thursday.
“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," said V.P. Nandakumar, managing director and chief executive officer (MD & CEO) at Manappuram Finance, in the release.
Asirvad has 115 branches spread across Tamil Nadu, Kerala and Karnataka.
Manappuram Finance had 3,293 branches across 27 states and Union territories with assets under management (AUM) of ₹ 88.23 billion as on 31 December 2014.
Manappuram shares gained 2.3% to close at ₹ 35.60 per share on Friday on the BSE, while the benchmark index, Sensex gained 1.01% to close at 29094.93 points.
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