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Manappuram Finance to tap markets with Rs 1,000 crore NCDs up to 10.4%
Publish Date: October 24, 2018
Private sector lender Kotak Mahindra Bank and automotive giant Bajaj Auto reported their 2QFY19 results along with other keenly watched companies. Read on to discover how each of them fared.
Company details
Incorporated in 1992, Kerala-based Manappuram Finance Limited has been in the business of providing short-term personal and business loans against gold jewelry.
The non banking financial company (NBFC) provides gold loans to customers in rural areas, semi-urban towns and large cities like Mumbai, Delhi, Chennai and Bengaluru. Currently, the company has around 3,500 branches 28 states and Union Territories with an asset under management (AUM) of Rs 166.18 billion. It employs over 24,700 people.
As of March 2018, the company boasts of 2.25 million customers with a total loan portfolio of Rs 117,349.82 million.
While gold loans comprise more than 75% of the business, the Thrissur-headquartered company have also been involved in asset finance, money transfer and foreign exchange and sale of gold coins.
The company’s other business verticals include vehicle and equipment finance business, payments business and SME business.
The NBFC is also looking to enter education financing: it recently stated its plan to infuse Rs 100 crore in Delhi-based India School Finance Company Ltd.
Company financials
The NBFC reported a 21% growth in net profit at Rs 199.99 crore in the first quarter of 2018-19.
The income also rose to Rs 947.18 crore, up from Rs 856.30 in the year-ago period.
While announcing their first quarter result in August 2018, the company also said that it was looking to raise up to Rs 3,000 crore through multiple public issues of non-convertible debentures.
Objects of issue
The first public issue will tap the public markets with a Rs 1,000 crore secured non-convertible debenture (NCD) issue.
Three-fourth of the capital raised will be used for expanding lending operations and to ensure better liquidity. The company will also look to repay or prepay the interest and principal of existing borrowings of the company.
The other 25% of the capital will be used for general corporate purposes.
Issue details
- Issue open date: October 24, 2018
- Issue close date: November 22, 2018
- Issue size: NCDs of Rs 1,000
- Issue face value: Rs 1,000 per NCD
- Issue price: Rs 1,000 per NCD
- Minimum quantity: 10 NCDs
- Listing: Bombay Stock Exchange
More details
The NCDs are available in ten options.
The interest rates range between between 9.7% to 10.46%.
The NCDs are secured and redeemable.
NCD rating
Care Ratings Limited: AA/Stable
Brickwork: AA+/Stable
Company promoters
VP Nandakumar and Sushama Nandakumar
Company contact
Manappuram Finance Limited
IV/470A (Old) W/638A (New)
Thrissur 680 567
Phone: +91 (487) 305 0000
Fax: +91 (487) 239 9298
Email: cs@manappuram.comRegistrar
Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound
LBS Marg, Bhandup West
Mumbai 400078
Phone: +91 (022) 259 638 38
Email: manappuram.ncd2018@linkintime.co.inClick here to go back 
