MGFL, Temasek in talks for a stake sale
MGFL already has a debt relationship with Temasek group, reports MC Vaijayanthi.india Updated: Feb 05, 2007 22:15 IST
Manappuram General Finance and Leasing Ltd (MGFL), a small cap non-banking finance company listed on the Bombay Stock Exchange, is in talks with Temasek group for a stake sale.
"We are in talks with them," confirms VP Nandakumar, chairman and managing director of the company. The company though interested in selling stake, is not willing to part with majority stake. MGFL is also in the process of getting its shares listed on the National Stock Exchange before April.
It is contemplating merger of group company Manappuram Finance Tamilnadu Pvt Ltd, based in Coimbatore, with itself. Both the companies are of equal size and a merger would give adequate capital base for the company. MGFL had recently announced a 1:1 bonus issue. For the nine months ended December 2006, the company had posted Rs 6.19 crore on an income of Rs 26 crore. The current capital base of the company is Rs 5.5 crore.
MGFL already has a debt relationship with Temasek group. Temasek's Asia Financial Holdings Pvt Ltd had approved Rs 475 cr debt through its Indian subsidiary Fullerton India last year.
MGFL has so far assigned loan assets to the tune of Rs 350 cr of the Rs 475 cr limit in different tranches. The debt assets are assigned to Fullerton, but MGFL acts as custodian of those assets, servicing it through its branches.
MGFL is involved in fund-based activities like gold and personal loans and has also been active in the money transfer business.
First Published: Feb 05, 2007 22:15 IST