Manappuram to receive Rs 108 crore capital infusion

KOCHI: The Kerala-based NBFC Manappuram Group of Companies will receive fresh capital infusion of rs 108 crore from UK and US based private equity firm, which will be used for expansion purposes to add about 200 more branches this year, a top company official said.

This is the second private equity infusion in less than a year, Manappuram Group Chairman, V P Nandakumar, told a press meet here. The company presently has 550 branches and has tied up and entered into lease agreements for another 100-200 branches to touch 750 by the end of this year.

Of the branches, one third would be in Kerala, another one third in major south india metros-- Chennai, Bangalore and Hyderabad. Remaining will be in other parts of the country, including North Indian states,he said.

The equity infusion would also help the company to improve its short term rating to A1+, from the present level of A1. This will help in bringing down borrowing costs, he said.

Aiming to become a financial supermarket, Manappuram was also into stock broking, commodity broking and insurance broking. ''We are also looking into vehicle finance and in remittances in a big way'', he said. It is also in the business of sale of gold coins.

Privately held gold is estimated to the tune of 150,000-200,000 tonnes, and the company's vision was to unlock at least 10 per cent of this gold, he said.