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Hyderabad: Kerala-based non-banking financial institution, Manappuram Finance Ltd on Tuesday said it will be acquiring 85.39% stake in Hyderabad-based NBFC, Indian School Finance Company Pvt Ltd (ISFC), for Rs 212.20 crore. ISFC focuses on lending to the education segment with loans to private schools, vocational colleges, and coaching centers, among others.
“The company has agreed to enter into binding agreements with ISFC and its shareholders for acquiring 85.39% stake by way of secondary purchase from the existing financial investors, Gray Matters Capital and Caspian,” Manappuram Finance said in a statement. The acquisition is expected to be completed in eight months.
ISFC had nearly Rs 523 crore assets under management (AUM) and Rs 90 crore as shareholders’ funds (including compulsorily convertible instruments) as on March 31, 2018. The company has a presence in 116 locations across 15 states in India through a hub and spoke model with over 300 employees.
Commenting on the development, VP Nandakumar, managing director and CEO, Manappuram Finance Ltd, said, “As a niche player, we expect ISFC’s business to be both scalable and profitable. We believe this acquisition will enable Manappuram Finance to grow faster and thereby help us achieve greater diversification.”