One of India’s leading Non-Banking Finance Company (NBFC) Manappuram Finance Limited has made a capital infusion of Rs 263.92 crore into its microfinance subsidiary Asirvad Microfinance Limited to enhance its net worth.
This capital infusion will reportedly help Asirvad in leveraging its microfinance loan portfolio. After the rights issue, Manappuram holdings in Asirvad will elevate to 93.33 percent.
“The recent capital infusion by the parent company Manappuram will enable Asirvad’ s portfolio grow from the present level of 3800 cr to over 5500 cr by March 2020”, said Raja Vaidyanathan, the Managing Director of Asirvad. Presently Asirvad serves 1.8 million microfinance clients in 22 states across India.
Asirvad was promoted by V. Raja Vaidyanathan and his family members in 2007. In February 2015, Manappuram obtained majority stakes in Asirvad and made it a subsidiary of Manappuram Finance Ltd.
As an NBFC-MFI, Asirvad provides microfinance loan to various income-generating activities.