Manappuram Closes Rs 245cr QIP
Manappuram General Finance and Leasing Limited, has raised Rs 245cr through QIP by issuing 35.40 lakh equity shares of face value of Rs 10 each at the rate of Rs 691 per share based on the prevailing market price (around Rs 696).
Capital World, Nomura, SBI Mutual Fund, Wellington Management Company, India Capital, Morgan Stanley, IDFC Mutual Fund, Geosphere and India Horizon Fund had participated in this issue.
Enam Securities was the sole arranger to the issue, while Spark Capital was the adviser to Manappuram.
These funds will be utilized by the company to augment its capital base and meet the CAR for the expected credit growth for the year 2010 – 11.
Transaction Reference: BS
The NBFC's CAR was 31% as on 31 December 2009. The statutory requirement is 15%.
Post issue, the total paid up capital of the company is Rs 32.46cr and has a net worth of Rs Rs 573.61cr.
MAGFIL is a kerala-based deposit taking NBFC engaged in providing loans against used gold jewellery. The company is also into asset financing and fee-based financing.
Segment wise revenue distribution
| Description | Asset Finance | Gold Loan and Other loans | Fee Based Activities | Unallocated items |
| Revenue | 1428.2 | 14874.8 | 199.25 | 108.7 |
| Expense | 2309.79 | 8637.4 | 38.89 | 996.64 |
| Result | -881.59 | 6237.4 | 160.36 | -887.94 |
Its target base is lower income households and self employed workers. Out of its FY 09 disbursals , only 14% were for loans Rs 10,000, with tenure of less than one year.
in the last 3 years, Hudson Equity Holdings and Sequoia Capital had invested in Manappuram by subscribing to compusorily convertible preference shares.
In December 2009, the company had merged its sister company Manappuram Finance Tamil Nadu with itself with a swap ratio of 2.1:1 The net worth of the company rose to Rs 333cr with the merger.
According to a research report by Religare, gold loan penetration in India is less than 1%. Other players in this space are Muthoot Finance and Shriram City Union Finance.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 04/11/11 | Manappuram Finance + Baring PE | Private Equity | Baring Private Equity Partners India Limited | 10.87 |
| 26/11/10 | Manappuram General Finance - QIP | IPO / Offerings | Looking For | 219.01 |
| 23/04/10 | Manappuram General Finance - Sequoia Capital (Exit) | Private Equity | Entity Not Known | 67.43 |
| 04/03/10 | Manappuram General Finance-QIP | IPO / Offerings | SBI Mutual Fund | 53.39 |
| 05/11/08 | Manappuram General Finance - AA Development - Granite - Sequoia | Private Equity | India Equity Partners Fund I | 10.45 |
| 20/12/07 | Manappuram General - India Equity Partners, Sequoia- Tranche I | Private Equity | India Equity Partners Fund I | 11.50 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/02/12 | Private Equity | AU Financiers India Private Limited | - | Planned | |
| 01/02/12 | Private Equity | Vontobel Funds Inc | Kotak Mahindra Bank Limited | 174.39 | Completed |
| 01/02/12 | M&A | Kotak Mahindra Bank Limited | Credit Card Portfolio | - | Completed |
| 01/02/12 | Private Equity | Aberdeen Asset Managers Limited | Housing Development Finance Corporation Limited | 275.47 | Completed |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Manappuram Finance Limited (Formerly Manappuram General Finance and Leasing Ltd) | V P Nandakumar | V 104 Manappuram House, Valapad P.O. |
Muthoot Finance Limited Shriram City Union Finance Limited-1 |
www.manappuram.com |
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