Gold loan firm Manappuram Finance Ltd is looking for diversification of its business into microfinance & financing of commercial vehicles, as per a stock market disclosure.
A meeting of the board of directors of the company will be held on September 23 to consider the proposal, the disclosure filed with BSE showed. It, however, did not reveal further details.
In March this year, Manappuram agreed to acquire Milestone Home Finance Company Pvt Ltd (Milestone) from Jaypee Hotels Ltd for an undisclosed amount, as part of its plans to diversify its business by commencing housing finance activities.
Founded in 1990, the company is engaged in providing gold loans, insurance services, foreign exchange, business loans, vehicle loans and gold coins. It is based in Thrissur, Kerala with an additional office in Mumbai.
Earlier this month, the company announced its public issue of secured, redeemable, non-convertible debentures of face value of Rs 1,000 each, aggregating Rs 150 crore. The NCDs will have an option to retain over-subscription up to Rs 150 crore. The proceeds would be used for lending and general corporate purposes.
For fiscal 2013-14, Manappuram Finance posted a net profit of Rs 226.01 crore and a net worth of Rs 2,492 crore.
Manappuram has over 3,200 branches across 25 states and four union territories with assets under management (AUM) of Rs 8,530 crore as on December 31, 2013.
The firm counts names like Baring PE India, WestBridge Capital and India Equity Partners as shareholders.
(Edited by Joby Puthuparampil Johnson)