| Manappuram General Finance and Leasing (MAGFIL), the flagship company of the Manappuram Group has arranged a fund infusion of Rs 70 crore from Sequoia Capital and India Equity Partners (IEP). |
| Sequoia Capital and IEP will invest Rs 35 crore each in two tranches to bankroll Manappuram’s expansion plans for MAGFIL and other group companies. |
| “Eight-five per cent of Manappuram’s portfolio is investment-worthy and this was a primary guideline in the pre-money valuation,” sources said. |
| An agreement to this effect is expected to be signed on Friday, though the date of closure of funding is unclear. |
| MAGFIL, the BSE-listed non-banking finance company, which is the flagship of the Manappuram Group, had earlier this month finalised the raising of Rs 46.80 crore in working capital from Sequoia and Hudson Equity Holdings, an investment vehicle of IEP, a $300-million private equity fund. |
| The Manappuram Group had announced that it was ceding 46,80,000 shares in MAGFIL to Sequoia and Hudson at a minimum price of Rs 100.272 apiece (a premium of Rs 90.272) to raise Rs 46.80 crore for the leasing and fund-based businesses. |
| The group is raising the second tranche of Rs 23.20 crore to augment the tier-I capital of its unlisted entities and provision for debt to fund its fee-based activities, which are gathering momentum, besides expanding its branch network for the gold and vehicle loans business. Sequoia and IIP will invest Rs 11.60 crore each in the second round, sources added. |
| The diversified Manappuram Group, headquarted at Valapad village in Thrissur district of Kerala, had first decided to raise an additional capital for MAGFIL and other group entities by way of preferential issue of securities at its board meeting on November 9. |
Source: Business Standard