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Silicon Valley's slick venture capital funds are doing deals with lesser known companies hailing from small towns. Manappuram General Finance and Leasing (MAGFIL), a company headquartered at Valapad village in Thrissur district of Kerala, will raise Rs 70 crore from Sequoia Capital India and India Equity Partners (IEP), reports Business Standard. Sequoia Capital and IEP will invest Rs 35 crore each in two tranches to fund the publicly-listed Manappuram's expansion plans. The deal is expected to be signed on Friday, BS reports. MAGFIL is a non-banking finance company (NBFC) with a majority of its customers based in Thrissur and surrounding areas.
MAGFIL had informed Bombay Stock Exchange that the company would raise Rs 46.80 crore in working capital from Sequoia and Hudson Equity Holdings, an investment vehicle of IEP, a $300-million private equity fund. They would sell 46,80,000 shares in MAGFIL to Sequoia and Hudson at a minimum price of Rs 100.272 apiece (a premium of Rs 90.272). That's Rs 46.80 crore in first tranche. The group is raising the second tranche of Rs 23.20 crore, where Sequoia and IEP will invest Rs 11.60 crore each.