Manappuram firms get Rs 108-cr PE funding.
The Manappuram Group of Companies, the Kerala-based non-banking finance company (NBFC), has received fresh capital infusion of Rs 108 crore from UK- and US-based private equity (PE) firms, said Manappuram Group Chairman V P Nandakumar. He added that the promoters too had infused money into the group companies by subscribing to warrants.
Addressing a press conference here on Monday, Nandakumar said UK-based Ashmore Alchemy, a joint venture between Ashmore and Alchemy, had invested Rs 32 crore through its Mauritius-based investment vehicle, AA Development Capital India Fund, into the group companies. Of the total funding, Rs 22.4 crore was invested in Manappuram General Finance and Leasing (MAGFIL) and Rs 9.6 crore in Manappuram Finance Tamil Nadu (MAFIT).
US-based PE fund Granite Hill, through its Asian subsidiary GHIOF Mauritius, had invested Rs 4.2 crore in MAGFIL and Rs 1.8 crore in MAFIT. The fund had invested in the companies’ compulsorily convertible preference shares, which would be converted into equity shares, he added.
The group’s existing investors — Sequoia Capital Growth and Hudson Equity Holdings Investments — too pumped Rs 32.74 crore into the group companies. Sequoia Capital Growth Investments, a PE fund managed by Sequoia Capital, infused Rs 11.46 crore in MAGFIL and Rs 4.91 crore in MAFIT. Hudson Equity Holdings, a fund managed by India Equity Partners (IEP), invested identical amounts in MAGFIL and MAFIT. Sequoia and Hudson together currently hold about 11.5 per cent stake each in the two companies.