Manappuram Finance on Wednesday said its board has approved equity infusion of up to Rs 150 crore in its arm Asirvad Micro Finance. "The Board of Directors at their meeting dated November 6, 2018 approved equity infusion up to Rs 150 crore in its subsidiary Asirvad Micro Finance Ltd(Asirvad)," Manappuram Finance said in a BSE filing.
Asirvad Micro Finance has paid up capital of Rs 42.56 crore with turnover of Rs 437.25 crore (as at March 2018), the filing added.
The capital infusion is a related party transaction and will be made at arms length, it said.
Asirvad operates in the micro finance sector. The capital infusion will facilitate in business growth of the subsidiary. Being the largest business, after gold loans, micro finance is strategically important to the company, Manappuram Finance added.
The company also said no governmental/regulatory approvals are required for the proposed capital infusion and the time period for the transaction will be five months.
Asirvad is an NBFC (non-banking finance company) incorporated on August 29 2007 with registered office in Chennai.
It was set up by its present Managing Director S V Raja Vaidyanathan. In February 2015, Manappuram Finance acquired 85 per cent stake in Asirvad and subsequently increased it to 92.30 per cent.
First Published: IST