Manappuram Finance looks to take MFI arm Asirwad Microfinance public

Manappuram Finance has recently said that it is toying with the idea of hiving off and taking its microfinance arm Asirwad Microfinance public within a year.

With a loan portfolio of over Rs. 5,360 crore and close to 25 lakh customers across 23 states, Asirwad Microfinance public is the fourth largest microfinance lender in the country in terms of the loan book. Founded in 2008 by S.V. Raja Vaidyanathan, Asirvad was taken over by Manappuram in February, 2015 for Rs. 48.63 crore. Under Manappuram, Asirvad has grown leaps and bounds.

V.P. Nandakumar, Founder and CEO, Manappuram Finance Group stated, “We are planning to hive off Asirvad within a year, and then take it public. We are looking at the right valuation. I am looking at a price to book value of 3-4 times, which is 2 times now.”

“This is our most profitable business when it comes to return on investment at 20 per cent. While my cost of fund is 10 per cent, my net interest margin is 10 per cent,” he further added.