Kerala-based NBFC, Manappuram Group of Companies has received second round of funding from private equity investors. U.K-based Alchemy Ashmore, a joint venture between Alchemy and Ashmore will make investments to the tune of Rs.32 crore in Manappuram General Finance and Leasing Limited (MAGFIL) and Manappuram Finance (Tamil Nadu) Limited (MAFIT). Alchemy Asmore’s Mauritius-based investment vehicle AA Development Capital India Fund LLC will make the investments. According to the deal, MAGFIL will receive Rs.22.4 crore while MAGFIT will get Rs.9.6 crore.
The U.S.-based private equity fund, Granite Hill, through their GHIOF Mauritius, will be investing Rs.4.2 crore in MAGFIL and Rs.1.8 crore in MAFIT. Sequoia Capital Growth Investments will be infusing Rs.11.463 crore in MAGFIL and Rs.4.913 crore in MAFIT. This is in addition to Rs 70 crore raised from Seqouia and Hudson Equity Holdings Ltd. (Mauritius) in June this year. Shailesh Mehta, Managing Partner of Granite Hill will join the board of directors of Manappuram. Sequoia and Hudson both have equity stake of 11.49% each.
All of this transaction is through compulsorily convertible preference shares, which will be converted in to equity at a minimum price of Rs.166.62 per equity share, the company said in its communiqué to the stock exchange. The infusion is expected to improve company ratings.
The group is convening a general body meeting of shareholders on September 25.
Services offered by Manappuram include deposits, gold and vehicle financing, forex and general and life insurance. It has also entered into an alliance with IDBI Fortis Life Insurance Company Ltd to provide wealth building and insurance products to customers in Kerala.