Money Matters Financial Services Ltd (MMFS) will infuse Rs 25 crore as its initial capital contribution in the proposed realty-focussed asset management company (AMC).
The realty AMC will have an initial capital of Rs 50 crore to start with, P.H. Ravikumar, Managing Director, MMFS told Business Line here.
This AMC will be a 50:50 joint venture between MMFS and Chicago-based Capri Capital partners.
Ravikumar pointed out that SEBI has now revised the minimum capitalisation level for AMCs at Rs 50 crore.
So the joint venture partners have decided to begin the AMC journey with an initial capital of Rs 50 crore, with each side pitching in Rs 25 crore.
Meanwhile, the shareholders of Money Matters Financial Services, a listed non-banking finance company, have approved the name change of the company to Capri Global Capital Ltd.
MMFS has also filed an application for name change with the Registrar of Companies, Ravikumar said.
He was hopeful that approval from the Registrar of Companies would be in place by end-July or by mid-August.
Money Matters and Capri Capital Partners are already in talks to see how the latter could participate in the equity capital of the non-banking finance company.
Quintin E Primo III, Chairman and Chief Executive Officer of Capri Capital Partners, will be offered a director’s seat on the board of Money Matters, it is learnt.
MMFS is currently focussed on two verticals — loans to small enterprises and real estate development.
By March 2014, MMFS expects its small enterprises’ loan book to be bigger than the real estate book.