Manappuram Finance

(nitin.verma) #652

Asirvad reached 3000 cr aum . Having incremental growth of 100 cr every month for past 5 months. to reach 3500 cr by year end

(Vishal Agrawal) #653

Ashirvad microfinance securitises Micro Finance Portfolio


Came across this article here that mentions an IPO for Asirvad Micro Finance subsidiary of Mannappuram. Can veterans of VP throw some light on how this would impact shareholders of Manappuram itself? Asirvad has been recently doing well and an IPO would mean dilution of stake for Manappuram - OR would this be something like a de-merger and shareholders of Manappuram would receive additional shares of Asirvad?


Well, I have heard that Mr. Nandkumar is unwilling to exit gold loan biz which is a kind of cash cow. There are many who wanted to buy it though. Sentiment towards well run MFIs is improving after Indusind’s acquisition of Bharat Financial and now HDFC’s financial interest in Bandhan. It seems that he would like to monetise MFI biz at some point of time and focus on Gold, Vehicle and housing. In the long run he would face pricing pressure from SFBs and better to prepare accordingly. FYI, Mr. Nandkumar is a veteran of commercial vehicle finance and exited this biz reluctantly only during NBFC crisis of late 90s. I am sure he would build it again. For the next few years MFI will be a growth engine but it is better to focus on secured lending i.e. Gold, Vehicle and home finance in the long run

(maheshkumar) #656

Expecting over 20% consolidated growth