Wednesday, August 17, 2011

Public Issue of Non Convertible Debentures from Manappuram Finance

  Manappuram Finance, a leading NBFC from Kerala, specializes in gold loans, has announced a public issue of Secured redeemable Non Convertible Debentures  of Rs.1,000 each.  The company will raise up to Rs.400 crore, with an option to retain oversubscription up to Rs.350 crore, aggregating Rs.750 crore.

Mannapuram Finance Ltd. is a part of the Manappuram Group with nine companies having diverse interests in Gold Loans, Asset Financing, Insurance, Foreign Exchange, Money Changing, and most recently, gold jewellery.

Highlights of the issue:
  • Issue Opens on August 18, 2011
  • Issue Closes on September 5, 2011
  • Attractive coupon of 12.20% per annum
  • No TDS on listed debentures

    Details of the two available options:
    400 Days
    24 Months
    Minimum Application
    Rs. 5000 & in multiples of 1 bond thereafter
    Rs. 5000 & in multiples of 1 bond thereafter
    Face Value
    Rs. 1000
    Rs 1000
    Issue Price
    Rs. 1000
    Rs. 1000
    Interest Payment
    Cumulative, on maturity
    Coupon Rate (%)
    Resident Individuals/HUF
    Yield (%)
    Resident Individuals/HUF
    Redemption Amount
    Rs. 1132.25 for all categories (face value plus redemption premium)

    Face value of NCD plus any interest
    that may have accrued
    Nature of Indebtedness
    Pari Passu with other secured creditors and priority over unsecured creditors

    Under option II, the yield to maturity will be 12.34 per cent in categories I and II, and 12.56 per cent in category III. The interest payment will be semi-annual.

    Mr. Unnikrishnan, Managing Director of the company said the market for gold loan financing was largely untapped and would offer a vast potential for further growth. The organised gold loan market was about 1.2 per cent of the value of total gold stock in India.
    He said the company was intending to enter the travel and tourism business. As of March 31, 2011, the company's gold loan portfolio comprised more than two million gold loan accounts.

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