Manappuram Finance looks to raise up to Rs 2,000 cr via bonds in FY16

In FY 2014-15, the company had recorded a 20.1% growth in net profit at Rs 271.3 cr

Manappuram Finance is planning to raise up to Rs 2,000 crore through bonds in the current financial year about half of which will be raised through public issue and the remaining via private placement. The funds raised will be used to finance business operations as the gold loan company believes that growth will be better this year.

“We are planning to raise between Rs 900-1,000 crore through retail bond issuances. The funds are likely to be raised in the second half of the financial year. Our credit rating has increased this year to ‘AA-’ from ‘A+’ last fiscal by CARE Ratings and Brickwork Ratings. The average tenure of these bonds will be three years,” said Kapil Krishan, group CFO of Manappuram Finance. Last year, the company had raised Rs 700 crore through public issue of bonds.

Krishan added that last year the company did not go for private placement of bonds. “We just did commercial paper issuances through the private placement route,” he said.

For the fiscal ended March 31, 2015 the company had recorded a 20.1 per cent growth in net profit at Rs 271.3 crore, while assets under management stood at Rs 9,595.5 crore clocking a growth of 17.5 per cent year-on-year. The company currently has 3,300 branches of which 50 per cent is in rural and semi-urban areas and the remaining in metros and cities.

“We are in the process of relocating the branches so that we that cater to the other high potential population,” said Krishan.