Mannapuram Finance may raise Rs 200 crore through NCDs

The funds raised through the issue would be utilised to meet the company's working capital requirements

Gold loan non-banking finance company (NBFC) Manappuram Finance is planning to raise up to Rs 200 crore through non-convertible debentures to meet working capital requirements.

NCDs (Non-Convertible Debentures) are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than that of convertible debentures.

The NCD issue is aggregating up to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore for issuance of additional NCDs aggregating to a total of up to Rs 200 crore, as per draft prospectus available with the market regulator Sebi.

The funds raised through the issue would be utilised to meet the company's capital expenditure and working capital requirements.

ICICI Securities is the lead manager to the issue. The issue would be listed on the BSE.

According to the company, it has over 50 tonnes of gold in its lockers.

Earlier in December, the Kerala-based based company had launched a public issue of secured, redeemable NCDs with an issue size of Rs 100 crore.