Manappuram announces NCD issue

Manappuram Finance Limited, a leading gold financing company, announced its public issue of non-convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to Rs 150 crore (with an option to retain over-subscription up to Rs 150 crore).

The debentures will have a tenure ranging from 400 days to 75 months and will have an effective yield up to 12.13% per annum.

Addressing a press conference here today V P Nandakumar, MD and CEO of the company said that there is a clear revival in the gold loan business in recent months and Manappuram Finance is well positioned to regain the momentum. The funds raised by this issue will help to drive growth and capitalize on the improving sentiments.

ICICI Securities Limited and AK Capital Services Limited are the lead managers to the Issue which opens on 15 September, and closes on 8 October. The debentures will be listed on BSE. Existing bondholders and shareholders of the company will be eligible for additional interest of 0.25% on investments in NCDs of 36 months tenure, he said.

Manappuram reported a net profit after tax of Rs 226.01 crore for FY 14 and a net worth of Rs. 2,492 crores as on March 31, 2014. The Company has a capital adequacy of 27.68% as of March 31, 2014 and has a long term credit rating of A+/Stable from CRISIL for the current issue.

The company 3,293 branches across 22 states and 4 UTs with Assets under management (AUM) of Rs.81.63 billion.