Muthoot Finance raises Rs 157-cr from two PE firms

Mumbai: Leading non-banking finance firm, Muthoot Finance, has raised Rs 157-crore by selling stake to two private equity firms that will enable the Kerala-based company to meet its capital requirements and ramp-up business growth. In the first stake-dilution in the firm, Muthoot family--the promoters of Muthoot Finance--has sold 2 per cent each to Baring Private Equity and Matrix Partners, valuing the firm at USD 1-billion, Muthoot Finance Executive Director, K P Padmakumar, told reporters here. 'Going forward, we would look for more private equity infusion in the firm and would eventually take the company public,' admakumar said. Following the transaction, the non-banking finance company will have a capital adequacy ratio of nearly 17 per cent as against
14.79 per cent at present, Padmakumar said. Padmakumar said that the funding from the PE firms are pure financial investments and they will not have representation on the company's Board. Muthoot Finance which started its operations way back in
1939 had assets worth Rs 8,000-crore as of March, 2010. It has plans to take the figure to Rs 15,000-crore by end-fiscal, Padmakumar said.




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