Manappuram Finance sells 4% to private equity

Stocks

oi-Sneha

By Sneha B K

Published: Thursday, March 15, 2012, 12:21 [IST]

Manapuram Finance, a Kerala based company sold a 4% stake worth Rs 155 crore to private equity players in order to pay outstanding amount of group firm Manappuram Agro Farms.

The shares of the company on Thursday were trading up by 3.04% at Rs 47.40 at 10.55 am IST.

VP Nandakumar, promoter of the Manappuram Finance, said in the statement that his intention is to repay all the amount of Manappuram Agro Farms such that there should be no inconvenience caused to the depositors. As per RBI with effect from March 22, 2011, it became a non-deposit taking non-banking financial company.

However, the RBI last month warned Manappuram Agro Farms for acceptance for deposits from the public, if it continues to accept it will be imprisoned, under the RBI, 1934 (RBI Act), the RBI had said in a press release last month.

The net profit of Manappuram Finance Limited for the quarter ended December 31, 2011 increased by 117% to Rs.161.37 crore.

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