Muthoot Fincorp is planning to raise about R500-600Cr PE investment by offloading 5-6% stake.
The proceeds will be used to fund it's expansion plans over the next one year. It is looking to add 1000 more branches in next one year.
Muthoot Fincorp Ltd is the flagship company of the Muthoot Pappachan group, which is also into hospitality, real estate and power generation. The company's main business is lending against gold, however the company also distributes mutual funds, and general and life insurance products, and is also present in the money-transfer business.
The outstanding portfolio of gold business is currently at R6500Cr and the company targets to increase it to R8500Cr by March 2012.
Muthoot Fincorp currently has a branch network of 1,650, which it plans to increase to 2,600 by March 2012 and to 4,500 by March 2013.
The company is also is looking to hive off its microfinance business into a separate MFI to meet regulatory requirements. It is in the process of acquiring another NBFC for this purpose, as it would be quicker than registering a new MFI.
The microfinance portfolio of about R100Cr is spread across Kerala, Karnataka and Tamil Nadu.
Muthoot Finance, started by Muthoot M Pappachan's brother M George Muthoot has raised two rounds of institutional funding. Muthoot Finance raised R157Cr from Baring Private Equity Partners India and Matrix Partners India in July'10 and then raised another R43Cr from Kotak India PE Fund in August'10.
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4134
3846
945
4260
973
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17649
42
1677
25526
3005
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1369
459
3151
32715
140
|
|
24632
|
|
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 11/01/12 |
Muthoot Fincorp - Fund Raising |
Private Equity |
Looking For |
- |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 11/05/12 |
M&A |
Warburg Pincus International |
Future Capital Holdings Limited (Co.) |
- |
Planned |
| 08/05/12 |
M&A |
AEGON |
Aegon Religare Life Insurance Company Limited |
- |
Rumor |
| 08/05/12 |
M&A |
HCL Group |
DLF Pramerica Life Insurance Company Limited |
- |
Planned |
| 02/05/12 |
Private Equity |
International Finance Corporation |
MAS Financial Services Limited |
12.00 |
Planned |
Company |
| Name | Promoters | Office | Competitor | Website |
| Muthoot Fincorp Limited |
Muthoot Pappachan Group |
Muthoot Centre, Tc No 14/2074- 7, Punnen Road |
|
www.muthootfincorp.com |
