Manappuram to acquire India School Finance Company
Manappuram Finance is planning to acquire over 85 per cent stake in the Hyderabad-based Indian School Finance Company (ISFC), a lender in education sector, for ~2.12 billion.
Manappuram, in a filing with the BSE, said the acquisition will facilitate its business growth on account of its strategic partnership with ISFC.
ISFC is a registered nonbanking finance company with the Reserve Bank of India (RBI).
Manappuram's stock closed up 1.22 per cent at ~99.6 per share on the BSE.
ISFC has ~5.22 billion Assets Under Management (AUM) in the financial year (FY) 2017-18, ~2.85 billion in FY17 and ~1.54 billion in FY16.
The board of directors of Manappuram Finance has authorised it to enter into securities-purchase agreement for acquisition of 85.39 per cent of the share capital from existing ISFC shareholders.
The deal is now subject to approval of the RBI and other customary conditions. The transaction would take eight months to complete.
ISFC, incorporated on May 9, 1994, is a private limited company and has its office registered in Hyderabad, Telangana.
The company is engaged in extending loans to educational institutions. It has served over 2.6 million students through approximately 4500 institutions since its inception.