MUMBAI: Muthoot Microfin, the microfinance arm of the country’s second largest gold loan company Muthoot Fincorp, is talking to private equity players to raise Rs 100 crore to shore up its core capital. As part of the deal, the 128-year-old Kochi-based Muthoot Pappachan Group will dilute 10 per cent equity in the firm to the investing PE for Rs 100 crore, and will also infuse Rs 100 crore of fresh capital into the company, Muthoot Microfin chief executive Sadaf Syed told PT As part of the deal, the 128-year-old Kochi-based Muthoot Pappachan Group will dilute 10 per cent equity in the firm to the investing PE for Rs 100 crore, and will also infuse Rs 100 crore of fresh capital into the company, Muthoot Microfin chief executive Sadaf Syed told PTI. The process will be over by February-March, he added, but refused to name the PEs citing confidentiality issues as it has already signed the term sheets with a couple of leading private equity players. Syed said the company, set up in 2010, has grown to become the sixth largest in terms of asset size and geographical presence with loan book of around Rs 1,900 crore as of November. Syed said the company, set up in 2010, has grown to become the sixth largest in terms of asset size and geographical presence with loan book of around Rs 1,900 crore as of November. Its loan book is growing at around 70 per cent, with presence in 10 states. Last year, its book grew at 85 per cent and it hopes to do better this year as well. He further said the financial services group will use the money to shore up the capital adequacy ratio so that it can aggressively ramp up ..
Source: Economic TimesMuthoot Microfin to sell 10% stake to PEs for Rs 100 crore
Industry: Financial services 2015-12-18