Baring India increases holding in Manappuram Finance

The investor bought an extra 1.23% of the company's share capital through open market transactions between June and October 9. The majority of the stake - 0.92% - is held by Baring India Private Equity Fund III, with the remainder owned by its predecessor.

According to a statement to the Bombay Stock Exchange, the PE firm - which previously owned a 5.94% stake - purchased 10.3 million shares, to bring its total shareholding to 7.18%.

In June, Baring India raised its holding from 4.99% to 5.94%, while in March it teamed up with Sequoia Capital India to commit INR1.3 billion ($29 million) to the company. The two investors reportedly acquired a 4.3% stake from Manappuram's promoter and chairman, V.P. Nandakumar, thus reducing the latter's shareholding to 32%.

At that time, it was said that Bric II Mauritius Trading, an arm of Siguler Guff - and one of Baring's LPs - owned shares worth INR200 million.

Manappuram was established in 1992 and uses gold held by Indian families as collateral for loans, as well as offering insurance and foreign exchange services. It has more than 2,500 branches across 22 states, with assets under management exceeding INR100 billion.

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• South Asia
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