As a surprise announcement, one more debt offer opened on 30.12.13 and that is from Manappuram Finance Ltd. (erstwhile known as Manappuram General Finance & Leasing Ltd.). Details of the same are as under:
Manappuram Finance is primarily engaged in gold loans business. Now it has planned to diversify into SME corporate financing and housing loan segment. To part finance this diversion, the company is offering Secured Redeemable non-convertible debentures of Rs. 1000 each having coupon rates of 11.50% to 12.50% with a tenure of 400 days, 2,3,5 years and 70 months. It also offers cumulative, annually and monthly interest payment options translating into yields ranging from 11% to 12.94% depending on the option selected.
The base size of the issue is Rs. 100 crore and has an option to retain oversubscription to the tune of Rs. 100 core making it a total offer of Rs. 200 crore. Minimum investment is to be made for 10 debentures and in multiples of 1 debenture thereon thereafter. Issue has already opened on30.12.13 and will close on or before 20.01.14. The issue is lead managed by ICICI Securities Ltd and Link Intime India Pvt. Ltd. is the registrar to the offer. This instrument is rated A+/Negative by CRISIL indicating an adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. Post allotments, debentures will be listed on BSE.
On performance front, due to sharp decline in gold prices, company suffered a severe setback in top and bottom line for 2012-13 and trends are expected to continue as gold prices are on decline and this has perhaps forced the management to diversify its activities.
According to market pundits, due to poor grading, issuer has tried to lure investors with higher coupon rates. So Avoid
Review By Dilip Davda on December 12, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
