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 .