Muthoot Finance Limited (MFL) has raised Rs.43 Cr in the second round of institutional funding from Kotak India Private Equity Fund (KIPEF) for a minority stake in the company.

Only last month, it raised Rs.157 Cr in its first institutional round of funding from Baring Private Equity Partners India and Matrix Partners India for a 4% stake. The deal valued the company at around Rs.3,925 Cr.

Transaction Reference: Myiris

Muthoot Finance 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’.

The Muthoot Group has diverse interests in 16 business verticals ranging from financial services, infrastructure & housing, information technology, power generation, hospitality, healthcare & education.

MFL’s primary focus is in the niche ‘gold loan segment’ and it enjoys a strong position in Kerala and Tamil Nadu.

Its gold loan portfolio consists of small ticket size loans (average ticket size of Rs.18,000) secured typically against household gold ornaments.

MFL for 2008-09 reported a PAT of Rs.97.72 Cr on a managed asset base of Rs.4,578 Cr compared to a PAT of Rs.63.6 Cr on an asset base of Rs.2,724 Cr during 2007-08.

MFIL has a gross loan book exceeding Rs.10,000 Cr and more than 1,800 branches across India.

In the BFSI space, many companies are on the fund raising spree through various routes.

MFI's like Swadhaar FinServe, Fusion Microfinance has raised funds via PE route while other MFI's like Grameen Koota, Bandhan had planned to raise funds. Angel Broking is raising Rs.300 Cr from PE firms, AK Capital plans to raise Rs.400 Cr via QIP , Cholamandalam is also raising funds through QIP and others.

Recently, Soros Fund picked 4% stake in BSE, while ADAG is planning to buy 26% stake in Indian Commodity Exchange.

Previous Article

Milestone Religare Picks Stake In CARE For Rs 75 Cr

Next Article

Sheth Creators Raises R80Cr From IIFL PE

KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
22/03/12	Muthoot Finance - Fund Raising	Private Equity		-
21/04/11	Muthoot Finance - IPO	IPO / Offerings		-
16/04/11	Muthoot Finance - Anchor Investments	IPO / Offerings	Credit Suisse Private Equity	-
20/09/10	Muthoot Finance - Matrix Partners(PE)	Private Equity	Matrix Partners India Investment Holdings LLC	5.48
20/08/10	Muthoot Finance - Kotak PE	Private Equity	Kotak India Growth Fund I	9.13
22/07/10	Muthoot Finance - Baring PE, Matrix Partners	Private Equity	Baring India Private Equity Fund III Limited	33.29

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
11/05/12	M&A	Warburg Pincus International	Future Capital Holdings Limited (Co.)	-	Planned
08/05/12	M&A	HCL Group	DLF Pramerica Life Insurance Company Limited	-	Planned
08/05/12	M&A	AEGON	Aegon Religare Life Insurance Company Limited	-	Rumor
02/05/12	Private Equity	International Finance Corporation	MAS Financial Services Limited	12.00	Planned

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Kotak India Growth Fund I	160	Pharma Transport & Logistics Media IT/ITES/Technology Retail	www.privateequityfund.kotak.com

Company
Name	Promoters	Office	Competitor	Website
Muthoot Finance Limited	George Alexandere Muthoot & Family	2nd Floor, Muthoot Chambers, Opp.Saritha Theatre Complex	Manappuram Finance Limited (Formerly Manappuram General Finance and Leasing Ltd) Multiflow Financial Services Private Limited	www.muthootfinance.com

  Advisor

Kotak Mahindra Capital Company