Comments
Manappuram Finance Ltd has launched a non-convertible issue (NCD) issue of Rs 400 crore, the tenure of which, at 400 days, is the shortest among the recent NCD issues by NBFCs. The company has a green-shoe option of an additional Rs 350 crore.
“We have taken a conscious call to raise money for a short-term period as most loans that we lend are generally for a one year period, to avoid an asset liability mismatch. With this issue, we have struck a balance between short-term and long-term funds,” said Mr. I Unnikrishnan, Managing Director, Manappuram Finance
Manappuram Finance Ltd is one of the leading listed gold loan NBFCs which lends money against used gold jewellery. The company is planning to raise Rs 6,000 crore in FY12 to expand its loan book from the current size of around Rs 9,000-15,000 crore
Mr Unnikrishnan added that the company plans to raise Rs 6,000 crore from multiple sources including bank loans, commercial papers and bond issues and will mop up Rs 2,000 crore by way of bond issues. He said, the company may come out with one or two more bond issues.
To attract retail and institutional investors for a short-term period, the company offers a yield to maturity rate of 12 per cent for 400 days. It also offers a yield to maturity rate of 12.56 per cent to retail investors and 12.34 per cent to institutional investors for a two-year period.
The issue opens on August 18 and closes on September 5, with an option of early closure. The bonds will be listed on BSE.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.