MICROCAPITAL BRIEF: Manappuram of India Acquires 70% Stake in Asirvad Microfinance of India for $21m

Manappuram Finance, an India-based non-banking finance company, recently acquired 70 percent of the shares of Asirvad Microfinance, a microfinance company based in India that provides enterprise loans, for INR 136 crores (USD 21.4 million). Manappuram will acquire the shareholding via a combination of purchasing shares from existing shareholders and subscribing to new equity shares of Asirvad.

The names of existing shareholders and the value of the shares they are selling have not been disclosed. The deal increases Manappuram’s stake in Asirvad from 15 percent to 85 percent.

As of March 31, 2013, Manappuram reported total assets of INR 127 billion (USD 2.10 billion), return on assets (ROA) of 1.58 percent and a return on equity (ROE) of 7.91 percent.

As of November 2014, Asirvad had an outstanding loan portfolio of INR 22.5 crores (USD 36.4 million) and 220,000 active members.

By Simon Pfanner, Research Associate

About Manappuram

Manappuram Finance Limited is an India-based non-banking financial company listed on the Bombay Stock Exchange. The company provides financial services including foreign exchange services, money transfers and loans against gold. Equity investors in the company include V.P. Nandakumar, Sushama Nandakumar, Baring India Private Equity Fund III, Smallcap World Corporation and Hudson Equity Holdings Limited. As of March 31, 2013, Manappuram reported total assets of INR 127 billion (USD 2.10 billion), return on assets (ROA) of 1.58 percent and return on equity (ROE) of 7.91 percent.

About Asirvad

Asirvad Microfinance Private was founded in 2007 with the mission of organizing groups of poor women to access financial services intended to reduce poverty. As of 2014, it operates 106 branches in 36 districts of the country. Among its financial products are loans for housing and microenterprise. As of 2014, Asirvad had an outstanding loan portfolio of INR 22.5 crores (USD 36.4 million) and 220,000 active members.

Sources and Additional Resources

[1] VCCircle News, Manappuram to pick up to 85% in Asirvad Microfinance for $21.4M

MicroCapital, March 25, 2014, Manappuram of India Acquires Milestone Home Finance

MicroCapital, September 25, 2011, IFMR Capital Securitizes $15m in Microloans Originated by Indian Microfinance Institutions (MFIs) Asirvad, Disha, Grameen Koota, Mimoza, Satin Creditcare, Suryoday, SV Creditline, Utkarsh

MicroCapital, September 21, 2009, Lok Capital Invests US $1.5 M in Asirvad Microfinance Private Ltd of India

MicroCapital Universe Profile: Manappuram Finance Limited

MicroCapital Universe Profile: Asirvad Microfinance

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