Manappuram Finance NCD Offer - Mar 2014 (Avoid)

Manappuram Finance Ltd. (also known as Manappuram General Finance & Leasing Ltd.) is primarily engaged in gold loan financing activities and now mulls diversification in other NBFC activities. The company that outperformed the sector till Fiscal 2011-12 marked a sharp drop in the bottom line of almost 65% for the fiscal 2012-13.

The company is a frequent visitor to the debt market with its fundraising exercise. This time, it is coming out with an offer of Secured Non-Convertible Debentures of Rs. 1000 each to mobilize Rs. 100 crore as a base offer with a green shoe option to retain additional Rs. 100 crore taking the overall size of the offer to Rs. 200 crore. Funds so mobilized will be used for its capital expenditures and working capital requirements. Minimum application is to be made for 10 NCDs and in multiples of 1 thereon, thereafter. The bonds have tenure ranging from 400 days to 70 months and coupon rate of 11.50% to 12.50% with options of cumulative, monthly and annually payment mode giving a yield ranging from 11% to 12.94%. Yield of 11% is only on 400 days cumulative offer. These NCDs are rated by ICRA as ICRA/A+ indicating adequate degree of safety regarding timely servicing of financial obligations but carry a low credit risk. The issue opens for subscription on 05.03.14 and will close on or before 25.03.14. ICICI Securities Ltd is the sole lead manager to this debt offer and Link Intime India Pvt. Ltd. is the registrar to the issue. Post allotment these NCDs will be listed on BSE.

The allotment of these NCDs is available in demat and physical mode, but trading will take place in demat mode only.


Conclusion / Investment Strategy

A Risky offer

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Dec 12, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The Manappuram Finance NCD March 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Manappuram Finance NCD March 2014 worth investing. The Manappuram Finance NCD March 2014 Note sets the NCD expectations in systematic way which tells you if Manappuram Finance NCD March 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Manappuram Finance NCD March 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


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