Pure-play loan-against-gold firm Manappuram Finance today said it has signed a pact to acquire Milestone Home Finance Company from Jaypee Hotels to enter the home loan market, for an undisclosed sum.
"With a pedigree in gold asset-backed lending, home asset-backed leading is a very synergistic expansion for us and is expected to add significant value to shareholders," Manappuram managing director & chief executive VP Nandakumar said in a statement.
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According to the company's executive director & deputy CEO I Unnikrishnan, the home loan market is worth Rs 8,20,000 crore and is growing at a CAGR of 19 percent. With the company's huge customer base of 1.5 million, Manappuram believes that it can play a crucial role in this field. Set up in 1992, the Thrissur, Kerala-based Manappuram went public in August 1995 and has over 4,000 branches across the country.
Milestone Home Finance is registered with the National Housing Bank and is promoted by Jaypee Hotels, which operates six properties in New Delhi, UP and Uttarakhand. While ICICI Securities acted as exclusive financial advisor, Amarchand & Mangaldas & Suresh A Shroff & Co acted as exclusive legal advisor to Manappuram.
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