By

Leading NBFC Muthoot Finance Ltd (MFIN) has raised Rs 43 crore in the second round of institutional funding from Kotak India Private Equity Fund (KIPEF) for a minority stake in the company. Only last month, MFIN raised Rs 157 crore in its first institutional round of funding from Baring Private Equity Partners India and Matrix Partners India by diluting 4% of the firm’s capital. The deal valued the company at around Rs 3,925 crore.

MFIN is the largest gold loan company in India, according to ICRA Management Consulting Services (IMACS) report on `Gold Loans Market in India 2009`. The company has a loan book exceeding Rs 9,000 crore and 1,800 branches across the country. The company is promoted by four brothers MG George Muthoot, George Alexander Muthoot, George Thomas Muthoot and George Jacob Muthoot collectively operating under the brand name of  ‘The Muthoot Group’. MFIN is in gold loan business for the last seven decades and in 2001 got registered itself as an NBFC with RBI.

M.G. George Muthoot, Chairman, MFIN, had said: "The inclusion of global investors into our

midst is a significant milestone and marks a new chapter in our journey. The support from such reputed investors is an endorsement of the robust business enterprise that we have nurtured and built over our lifetimes and that of our ancestors. We hope to realise the true potential of the business and our vision to be the leading provider of financial services in this country with their backing and support.” The group is 123 years old.

Leave Your Comment(s)