Kerala-based gold loan non-banking financial company (NBFC) Manappuram Finance Limited (MFL) has completed the takeover of Asirvad Micro Finance Private Limited, a Chennai-based NBFC-microfinance institution. The acquisition is part of MFL’s business diversification, and to meet its objective of becoming a financial company offering a wide range of products and services. MFL has acquired a 71.14 per cent of the equity capital of Asirvad in an all-cash transaction for Rs 48.63 crore.
The company will infuse a further Rs 63 crore into Asirvad as equity capital, taking its total stake to 84.98 per cent, a company release said. VP Nandakumar, managing director and chief executive officer of MFL, said the microfinance sector had made a strong comeback in the recent months. With a stable regulatory environment in place, prospects for the future are bright, he added. “In the coming months, we expect microfinance to contribute significantly to the growth of our company along with other new businesses like housing finance and vehicle finance,” he said. Asirvad conducts its micro-finance lending business from 115 branches, spread across Tamil Nadu, Kerala and Karnataka. As on December 31, 2014, MFL has 3,293 branches across 27 states and Union territories, with assets under management of Rs 8,823 crore. The company’s net worth stood at Rs 2,603 crore.