Manappuram Finance NCD Issue Dec-2013:

Manappuram Finance Limited – Gold Loan company have come up with an NCD issue which will open Dec 30, 2013.Manappuram finance will raise Rs.100 Crore with an option to retain over subscription of same amount aggregating to Rs.200 crore.

Details of Manappuram NCD issue Dec-2013 are as below:

Imp Dates:

  • Issue Open Date:30-12-2013
  • Issue close Date:20-01-2014.

Interest Rates:

Manappuram Finance NCD Dec-2013

Series Tenure Interest payment Frequency Interest Rate %
I 400 Days Cumulative 11.00
II 24 M Monthly 11.50
III 24 M Annually 12.00
IV 24 M Cumulative 12.00
V 36 M Monthly 12.25
VI 36 M Annually 12.50
VII 36 M Cumulative 12.50
VIII 60 M Monthly 11.50
IX 60 M Annually 12.00
X 60 M Cumulative 12.00
XI 70 M Cumulative 12.61

With Option XI,money will get doubled within period of 70 Months.

Security : Investors of this issue would have first Pari passu charge on immovable assets,Loans , future Receivables of company.

Credit Rating : A+ (Negative) – Indicates Adequate safety towards repayment of principal and interest.

Profit Reported By company Since Last 05 Years:

Year ended Profit Before TaxCrores Profit After TaxCrores
March 2009 46.28 Crores 30.30 Crores
March 2010 181.83 Crores 119.72 Crores
March 2011 423.90 Crores 282.66 Crores
March 2012 877.21 Crores 591.46 Crores
March 2013 306.51 Crores 208.43 Crores

As per RBI directions loan up to 60% of the gold value can be only disbursed.This directive have certain advantages and disadvantages.Due to only 60% loan,risk against fall in Gold value will be covered for company but it will also impact loan disbursement.Any one who can take credit risk..may invest in NCD  issues of  gold loan companies.

Update as on 09-01-2014 : RBI have allowed Loan to Value ration of 75% w.e.f 09-01-2014 .Earlier it was 60% as mentioned above.It is positive development for Gold loan companies as they will able to disburse more loan amount.

Muthoot finance NCD have also opened today for details of Muthoot Finance NCDs Pl click Here.

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