We are well capitalised for next 1.5-2 yrs : VP Nandakumar, Manappuram General Finance
aVP Nandakumar, Executive Chairman, Manappuram General Finance discusses the company's recent QIP issue on a chat with ET Now.
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| VP Nandakumar, Executive Chairman, Manappuram General Finance discusses the company's recent QIP issue on a chat with ET Now. Excerpts:
You recently raised about Rs 1000 crores by the QIP issue. How much does it augment your CAR by and how much is the promoters stake post the issue?
VP Nandakumar: Our capital adequacy requirement as per the regulation is 15%, so there might be the capital adequacy going up by 10% temporarily but by the end of this financial year, it will come down to around 20%. The fund we raised through QIP is to take care of our capital adequacy requirement for another 18-24 months, so that is our plan and regarding the dilution for the promoter, the dilution is around 14%, so the promoter stake also has come down from 42% to 36%.
Are you looking at raising more money via the QIP route in the medium term?
VP Nandakumar: In another 1.5 to 2 years, we may not need to tap a further round of capital.
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Several entities have put in their expression of interest in a banking license. Have you?VP Nandakumar: I am a lone voice against it because I see the strength of an NBFC as a single product lender so focussed in their operations, so where the bankers are unable to be successful, NBFCs are successful in that segment, so as far as NBFCs are concerned, focussing on a single product like Shriram Transport financing on commercial vehicle or housing finance companies focussing on there, so Manappuram can focus on gold loans rather than thinking of banking licenses, etc., that will be the better option for any NBFCs, this is my personal opinion.
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