Kochi | Kerala-based gold loan NBFC Manappuram Finance has concluded its takeover of Asirvad Micro Finance Pvt Ltd.
With this, the company has taken an important step towards diversifying its business with the objective of becoming a financial company offering a wide range of products and services, a company release said today.
Manappuram Finance has acquired 71.14 per cent of the fully diluted existing equity capital of the Company in an all cash transaction at a cost of Rs 48.63 crore.
The company will infuse a further amount of Rs 63 crore into Asirvad as equity capital, taking its total stake to 84.98 per cent of the enlarged and fully diluted equity capital of its new subsidiary.
V P Nandakumar, Managing Director & CEO, Manappuram Finance said the microfinance sector has made a strong comeback in recent months and with a stable regulatory environment in place, prospects for the future are bright.
In the coming quarters, we expect that microfinance will contribute significantly to the growth of our company along with our other new businesses like housing finance and vehicle finance.
Asirvad Micro Finance is an NBFC-MFI based in Chennai. The company conducts its business of micro lending from 115 branches spread across the states of Tamil Nadu, Kerala and Karnataka.
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