Date:05/09/2008 URL: http://www.thehindu.com/2008/09/05/stories/2008090553702100.htm

Business

Capital infusion of Rs. 108 crore for Manappuram Group

Special Correspondent

General body meeting on September 25

Investments in convertible preference shares
Infusion expected to improve company ratings

KOCHI: Kerala-based NBFC Manappuram Group of companies will receive fresh capital infusion of Rs.108 crore from U.K. and U.S.-based private equity firms, Manappuram Group chairman V.P. Nandakumar has said.

U.K-based Alchemy Ashmore, a joint venture between Alchemy and Ashmore will make investments to the tune of Rs.32 crore in Manappuram General Finance and Leasing Limited (MAGFIL) and Manappuram Finance (Tamil Nadu) Limited (MAFIT), he said. Alchemy Asmore’s Mauritius-based investment vehicle AA Development Capital India Fund LLC will make the investments. According to the plan, MAGFIL will receive Rs.22.4 crore while MAGFIT will get Rs.9.6 crore.

The U.S.-based private equity fund, Granite Hill, through their GHIOF Mauritius, will be investing Rs.4.2 crore in MAGFIL and Rs.1.8 crore in MAFIT, Mr. Nandakumar said.

Mr. Shailesh Mehta, former CEO of Providian, a U.S.-based financial Company, is the Managing Partner of Granite Hill, he added.

The investments in the form of Compulsorily Convertible Preference Shares (CCPS) will be converted in to equity at a minimum price of Rs.166.62 per equity share, he said. Sequoia Capital Growth Investments will be infusing Rs.11.463 crore in MAGFIL and Rs.4.913 crore in MAFIT, he said.

The group is convening a general body meeting of shareholders on September 25.