Manappuram Finance promoter to sell 4 per cent stake

MUMBAI: Manappuram Finance's promoter and Chairman V P Nandakumar today said he intends to sell four per cent stake to "reputable" investor to repay all outstanding public deposits.

"I intend to repay all outstanding public deposits of Manappuram Agro Farms and honour all such obligations such that no inconvenience is caused to the depositors," Nandakumar said in a letter to Manappuram Finance.

Manappuram Agro Farms is the group company of Manappuram Finance, which is into the gold loan business.

"Towards this effect, I intend to sell shortly approximately four per cent of the share capital in Manappuram Finance on the stock exchange to certain reputable institutional investors," he said in a letter forwarded to the BSE.

As on January 31, 2012, Manappuram Agro Farms had a total liability, including public deposits, of Rs 140 crore.

Nandakumar owns 6.74 per cent in the company as a promoter. Together with his wife the holding in the company stands at 7.27 per cent as of December 31, 2011.

With the RBI stating that acceptance of deposits by the firm is non-compliant with current regulations, Manappuram Agro Farms has stopped accepting public deposits since February.

The RBI had last month cautioned Manappuram Finance Ltd against accepting public deposits as the firm has converted itself into a non-deposit taking NBFC.

Shares of Manappuram Finance today closed at Rs 46 apiece, up 3.60 per cent on the BSE.