Muthoot Microfin to raise Rs 130 cr from Creation Investments

Muthoot Microfin Ltd, part of Muthoot Pappachan Group, today said it has got commitment of Rs 130 crore from Chicago-based private equity fund Creation Investments LLC (Creation).
Out of Rs 130 crore, Muthoot Microfin has already received Rs 50 crore and another Rs 50 crore will come by March 2018. The balance Rs 30 crore from Creation will come post March 2018 based on the company's performance.
"Creation has agreed to invest Rs 130 crore by 2018. Of which Rs 50 crore has come in now and another Rs 50 crore will come by March 2018. They (Creation) have an option to invest additional Rs 30 crore thereafter," Muthoot Microfin's chief executive officer Sadaf Sayeed told reporters here today.

With the investment of Rs 100 crore, Creation will pick up 9 per cent stake in the microfinancier.
Sayeed the promoter of the company, Muthoot Pappachan Group (MPG), has already invested Rs 100 crore in the company and an additional Rs 50 crore will be invested by March 2018.
The company is looking at listing by 2019, Sayeed said.

He said the funds raised will be utilised to expand business to newer geographies such as Bihar, Uttar Pradesh, Odisha, Chhattisgarh, Haryana and Punjab.
The company has nearly 346 branches and is looking at increasing to 425 by end of the financial year 2016-17.

"We may open additional 500 new branches in the next 3 years to expand its footprint across the country," Sayeed said.
He said the company has 4,800 employees and is planning to recruit 4,000 employees by 2020.