Manappuram Finance Ltd (MFL), a lender against gold jewellery, has no plans to raise equity capital this fiscal, its Managing Director, Mr I Unnikrishnan, said today.
The company, which has a paid up equity capital of about Rs 160 crore, may, however, go in for further raising the debt component this financial year as it has enough headroom. Mr Unnikrishnan was here for a roadshow of its maiden public issue of bonds—non-convertible debentures (NCDs)—slated to open on Thursday.
MFL aims to mobilise Rs 400 crore through the NCD issue with an option to retain oversubscription up to Rs 350 crore, taking the aggregate issue size to Rs 750 crore.
Mr Unnikrishnan said that MFL expects its disbursements to grow by 50-60 per cent this financial year to about Rs 30,000 crore. MFL had disbursed Rs 18,000 crore during 2010-11. The company is positioning gold loans as convenience loans rather than as distress loans.
MFL, with a gold holding of 62 tonnes, has gold loan portfolio of about Rs 9,000 crore, accounting for a 13 per cent market share of the total gold loans of Rs 70,000 crore provided by banks, financial institutions and NBFCs.
Currently, 86 percent of MFL’s gold loan portfolio is in South India. About 70 percent of its branches are also in South India. About 30 percent of company’s equity is held by foreign institutional investors (FIIs) and private equity investors.