MANAPPURAM FINANCE ANNOUNCES ISSUE OF NON CONVERTIBLE DEBENTURES
Manappuram Finance Ltd., one of India’s leading gold loans NBFCs, announced today the public issue of secured, redeemable, non-convertible debentures of face value of Rs. 1000 each, aggregating to Rs.100 Crores (with an option to retain over-subscription up to Rs. 100 Crores) making the total issue Rs.200 crore for a tenure ranging from 400 days to 70 months. The NCDs will have an effective yield of up to 12.61% per annum.
Sharing his thoughts at the announcement, Shri V.P. Nandakumar, MD and CEO, Manappuram Finance Ltd. stated, “At Manappuram Finance we feel that short term volatility is best overcome with the right fundamentals. The funds raised by this issue will be utilized for further growth of the business.”
Mr. I Unnikrishnan, Executive Director and Deputy CEO, Manappuram Finance Ltd. added, “The capital raised by this NCD issue will be utilized in broadening the working capital base of the company.
Manappuram Finance Ltd. reported a net profit after tax of Rs. 208.432 Crores for FY 13 and a net worth of Rs. 2,443 Crores as on March 31, 2013. The Company has a capital adequacy of 22.67% as of March 31, 2013 and has a long term credit rating of A+/Negative from CRISIL for the current issue for an amount of up to Rs. 300 Crores.
The NCDs issued by Manappuram Finance Ltd. will carry a face value Rs. 1000 each. ICICI Securities is the lead manager for this NCD Issue. The issue opens on 30th December 2013 and closes on 20th January 2014, with an option of early closure. The debentures will be listed on BSE.
INDICATIVE SCHEME STRUCTURE
| Coupon (%) | |||||
| 400 days | 24 months | 36 months | 60 months | 70 months | |
| Monthly | – | 11.50 | 12.25 | 11.5 | – |
| Annual | – | 12.00 | 12.50 | 12.00 | – |
Effective Yield (%) |
|||||
| 400 days | 24 months | 36 months | 60 months | 70 months | |
| Monthly | – | 12.13 | 12.94 | 12.13 | – |
| Annual | – | 12.00 | 12.50 | 12.00 | – |
| Cumulative | 11.00 | 12.00 | 12.50 | 12.00 | 12.61 |
| Amount on maturity (for Rs. 1000 investment)(in Rupees) | |||||
| 400 days | 24 months | 36 months | 60 months | 70 months | |
| Monthly | – | 1,000.00 | 1,000.00 | 1,000.00 | – |
| Annual | – | 1,000.00 | 1,000.00 | 1,000.00 | – |
| Cumulative | 1,121.70 | 1,254.40 | 1,424.30 | 1,762.30 | 2,000 |
Manappuram Finance Ltd. is one of India’s leading listed gold loans NBFCs engaged in providing finance against used household gold ornaments. Incorporated in 1992, the company has been promoted by Mr. V.P. Nandakumar (current MD & CEO). It is headquartered at Valapad in the Thrissur District of Kerala. The company went public in 1995 and its shares are listed on the BSE, CSE and MSE and are permitted to trade on NSE.
As of September 30, 2013, the Manappuram Finance had 3,293 branches across 26 states and union territories with Assets under management (AUM) of Rs.92 billion. The company’s net worth stood at Rs.2,443 Crores as on March 31, 2013.
