Manappuram Finance acquires majority stake in ISFC

NBFC Manappuram Finance has announced entering into an agreement to acquire 85.39 per cent stake in Indian School Finance (ISFC) for about Rs. 212.20 crore.

ISFC is in the business of lending to educational institutions like private schools, vocational colleges and institutes, coaching centres, etc. to build their infrastructure. The company had assets under management of about Rs. 522.59 crore in FY18.

Manappuram Finance, in its regulatory filing said, that ISFC being in a niche sector with scalable and profitable business model, the acquisition will be a key growth driver for Manappuram. The company also entered into a transfer restrictions agreement with ISFC and certain continuing shareholders of the target company.

At 12:10 hours on Tuesday, Manappuram Finance was trading at Rs. 100.15 per share, up Rs. 1.80 or 1.83 per cent on NSE. The stock opened at Rs. 98.60 and touched an intra-day high of Rs. 100.80 per share on NSE. The scrip has a 52-week high of Rs. 130.45 and a 52-week low of Rs. 82.10 per share on NSE. The stock attracted a trading volume of 15,01,344 shares on NSE.