Manappuram Finance NCD Issue March 2014 – To Open On March 05,2014

Manappuram Finance – issue of Secured Debentures March – 2014 : Manappuram finance – one of the leading Gold loan company will raise Rs.100 crore through this issue.

Imp Dates:

  1. Issue Open Date: March 05, 2014
  2. Issue Close Date:March 25, 2014

Credit Rating : A+ from ICRA.which indicates adequate safety.

Interest Rates:

Series Tenure Interest payment Frequency Yield per annum % Maturity value of Rs.1000
I 400 Days Cumulative 11% 1121.70
II 24 Months Monthly 12.13 1000
III 24 Months Annually 12 1000
IV 24 Months Cumulative 12 1254.40
V 36 Months Monthly 12.94 1000
VI 36 Months Annually 12.50 1000
VII 36 Months Cumulative 12.50 1424.30
VIII 60 Months Monthly 12.13 1000
IX 60 Months Annually 12 1000
X 60 Months Cumulative 12 1762.30
XI 70 Months Cumulative 12.61 2000

One can view that this NCD issue offers different investment options – cumulative,annual interest payment and monthly interest payment option.For annual and monthly interest payment option,interest will paid out periodically and maturity value will be principle amount while for cumulative mode,interest and principle to be paid at maturity.

Security :Issue secured by mortgage over immovable property of company and receivables of the company.

Overall , interest rate offered is good but higher returns comes with commensurate credit risk.  Though this issue is secured ,investors having understanding of credit risks associated with gold loan companies can think to invest .

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