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One of the leading gold loan non-banking financial company (NBFC) of India, Manappuram Finance declared the issue of its secured, redeemable, non-convertible debentures (NCD) on 26 December' 2013 . These NCDs will carry a face value Rs. 1000 each, aggregating to Rs.100 Crores (with an option to retain over-subscription up to Rs. 100 Crores) for a tenure ranging from 400 days to 70 months. The NCDs will have an effective yield of up to 12.61 per cent per annum.
"At Manappuram Finance we feel that short term volatility is best overcome with the right fundamentals. The funds raised by this issue will be utilized for further growth of the business," says V.P. Nandakumar, MD & CEO, Manappuram Finance Ltd.
Manappuram Finance Ltd. reported a net profit after tax of Rs. 208.432 Crores for FY 13 and a net worth of Rs. 2,443 Crores as on March 31, 2013. The Company has a capital adequacy of 22.67 per cent as of March 31, 2013 and has a long term credit rating of A+/Negative from CRISIL for the current issue for an amount of up to Rs. 300 Crores.
"The capital raised by this NCD issue will be utilized in augmenting the capital expenditure and meeting the working capital requirements," says I Unnikrishnan, Executive Director and Deputy CEO, Manappuram Finance.
ICICI Securities is the lead manager for this NCD Issue. The issue opens on 30th December 2013 and closes on 20th January 2014, with an option of early closure. The debentures will be listed on BSE.
Manappuram Finance Ltd. is one of India's leading listed gold loans NBFCs engaged in providing finance against used household gold ornaments. The company went public in 1995 and its shares are listed on the BSE, CSE and MSE and are permitted to trade on NSE.