Non-banking financial company Manappuram Finance has entered into an agreement to acquire 85.39 per cent stake in Indian School Finance (ISFC) for over Rs 212 crore.
ISFC, which lends to educational institutions, including private schools, vocational colleges and institutes, coaching centres to build infrastructure, had assets under Management (AUM) of Rs 522.59 crore in FY 2018.
"The Board of Directors of Manappuram Finance Ltd...has authorised entering into a securities purchase agreement in connection with the company's acquisition of 85.39 per cent of the share capital of Indian School Finance Company Pvt Ltd from certain existing ISFC shareholders," Manappuram Finance Co Pvt Ltd said in a regulatory filing.
The company has also entered into a transfer restrictions agreement with Indian School Finance Company and certain continuing shareholders of the target entity.
Manappuram Finance said the aggregate cost of acquisition is Rs 212.20 crore.
"The acquisition will facilitate company's business growth on account of a strategic partnership between ISFC and the company. Being a niche sector and since business is both scalable and profitable, the acquisition will be a key growth driver for company," it said.
The proposed acquisition is subject to approval of the Reserve Bank of India and other customary conditions precedent.
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