Baring, Sequoia invest $29m in Manappuram

The two investors acquired 4.3% of the stake held by the listed company's promoter and chairman, V.P. Nandakumar, thus reducing the latter's shareholding to 32%. Manappuram's shares closed at INR46 on the Bombay Stock Exchange on Wednesday, up 3.6%. Nandakumar's shares were sold at INR40 apiece - a 13% discount to Wednesday's closing price.

Baring India and Sequoia now hold respective stakes of 2.65% and 3.71%, while Bric II Mauritius Trading, an arm of Siguler Guff - and one of Baring's LPs - now holds shares worth INR200 million. Of the amount invested, Sequoia contributed INR414 million, while Sequoia provided INR538 million.

Sequoia previously injected $14 million for 11% of Manappuram through a fresh issue in 2007. It sold this stake for around $76 million in April 2010 in what some Indian reports cited as one of the biggest private equity exits of that period. The firm netted a return of more than 7x from its 30-month investment. This time around, Sequoia has invested via the open market.

Manappuram uses gold held by Indian families as collateral for loans, and also operates insurance and forex services. It generated a turnover of INR18.4 million and net profit of INR4 billion in the first nine months of 2011.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Financials
• South Asia
• PIPEs
• India
• Baring Private Equity Partners India
• Sequoia Capital
• Financial Services
• PIPE