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Manappuram Fin divest 4% stake via bulk deal-news15032012


Manappuram Finance, promoter - V P Nandakumar has divested 4% stake in the company through bulk deal on NSE to PE investors to repay all outstanding public deposits of Manappuram Agro Farms.

V P Nandakumar has sold 3.61 crore shares at Rs40 per share to Barings India, Beaver Investment, BRIC II Mauritius and Nambe Investments.

According to bulk deal data on money control, Barings India bought 1.04 crore shares, Beaver Investment Holdings bought 6.84 Mn shares, BRIC II Mauritius bought 5.04 Mn shares and Nambe Investments (Sequoia Capital) bought 6.61 Mn shares.

As on Dec 2011, Nandakumar held 6.74% stake in the company as a promoter and his wife held 0.54% in the company.

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

Last month, The Reserve Bank of India banned Manappuram Finance and Manappuram Agro Farms from taking public deposits as it is a violation of rules governing its licence to function as a lender.

Under the RBI Act, 1934, the lender, which provides funds with gold as collateral, has been directed not accept even renew those deposits which mature.

Manappuram Finance, which was a deposit-taking finance company, turned into a non-deposit taking one in March 2011. But it continued to take deposits from individuals and also in the farming company to boost its funding.

Recently in January, Manappuram Finance was planning to raise Rs 400 crore through NCDs with an option to retain oversubscription of Rs200 crore. Last Sept, the company raised Rs750Cr by issung NCDs for various financing activities including lending and investments and towards business operations including for capital expenditure and working capital requirements.
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