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: Option I II Tenure 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 Semi-Annual Coupon Rate (%) Resident Individuals/HUF NA 12.20% Corporates/Institutions/QIBs NA 12.00% Yield (%) Resident Individuals/HUF 12.00% 12.56% Corporates/Institutions/QIBs 12.00% 12.34% 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. http://www.manappuram.com/ Download prospectus