Manappuram Finance Ltd, the second-largest gold loan company in the country, on Friday said its board of directors has accepted the rights issue proposal of its subsidiary, Asirvad Microfinance Ltd.
The Kerala-based company said on September 23 it is entitled to purchase 90.96 lakh shares having a face value of Rs 10 per share for Rs 268 per share, including a premium of Rs 258 per share. The total issue size is 93,28,358 shares.
The last date of acceptance of the offer is September 28, 2022. The board approved subscription to the rights issue of up to 93.28 lakh shares having a value of Rs 250 crore approximately, in case of renunciation, available, it said.
Asirvad Microfinance was formed with the intention of providing financial access to the underserved through the formation of a commercially-viable business which was incorporated under the Companies Act, 1956 on August 29, 2007.
It became a subsidiary company of Manappuram in the financial year 2014-15 after it acquired the controlling stake of 85.03 percent in equity. Post-acquisition, Manappuram had periodically subscribed for the rights issue and infused equity in FY 2016-17, FY 2017-18, and FY 2018-19.
