Manappuram General Finance and Leasing Ltd (MGFL), a Kerala-based non-banking finance company which is focussed on gold loans, plans to raise around Rs 500 crore from Qualified Institutional Placement (QIP) and Rs 1,000 crore by issuing non-convertible debentures (NCDs).
Speaking to the media, Mr V P Nandakumar, executive chairman of Manappuram General Finance and Leasing Ltd, said that the initial business target for the current fiscal was set at Rs 5,000 crore, which will now be achieved by end of September 30, 2010 itself and hence there was a need to raise their business target (loan outstanding) to Rs 6,000-6,500 crore by end of the current fiscal and to support this the company has lined up various fund raising plans.
The promoters of Manappuram General Finance and Leasing Ltd also plan to infuse around Rs 100 crore into the company. As part of it’s expansion plan Manappuram Gold Loans proposes to open around 400 additional outlets during the current financial year.Currently Manappuram Gold Loans employs around 8,000 people and plans to add 2,000 more employees by the end of the current fiscal.
In it’s latest results the company has posted a net profit of Rs 119.72 crore,an increase of around 295 per cent.Increased profits were driven by a surge in company’s gold loan book which went up to Rs 1,845.6 crore from Rs 397.5 crore, an increase of around 365 per cent.