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.
A Risky offer
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.
