Manappuram Finance Limited NCD
(i) Manappuram Finance Limited is one of India’s leading gold loan NBFCs. Promoted by Shri. V.P. Nandakumar, the current MD & CEO, its origins go back to 1949 when it was founded in the coastal village of Valapad (Thrissur District) by his late father Mr. V.C. Padmanabhan. The firm was involved in pawn broking and money lending carried out on a modest scale. Shri Nandakumar took over the reins in 1986 after his father expired.
(ii) Since then, it has been a story of unparalleled growth with many milestones crossed. Incorporated in 1992, Manappuram Finance Ltd. has grown at a rapid pace. Today, it has 4208 branches across 28 states/UTs with assets under management (AUM) of Rs. 166.18 billion and a workforce of 24,717.
(iii) At Manappuram, technology and customer centricity have always been our key focus areas and They are now leveraging digital channels and even providing their customers doorstep services. They have also derisked their business from the volatility in gold prices by re-aligning the tenure and loan-to-value of our gold loans. These efforts have started fructifying in the form of stable asset quality and profitable growth of their gold loan business.
(iv)They are diversifying, with products spanning microfinance, commercial vehicles finance and housing finance, among others. They making steady progress on this front. New businesses currently represent about one-fourth of our total assets and their share is likely to go up in the future. their strategy is to minimize risk profile and enable us to emerge as a larger, multi-product Non-Banking Financial Company (NBFC).
Objective of NCD Manappuram Finance Limited NCD:
Objective of Manappuram Finance Limited NCD are:
1. For the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of our Company
2. General Corporate Purposes
Manappuram Finance Limited NCD Details:
| Open Date: | Oct 24 2018 |
| Close Date: | Nov 22 2018 |
| Issue Type: | Fixed Price Issue NCD |
| Issue Size: | ₹ 1000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 1 NCD |
| Minimum Order Quantity: | 10 NCD |
| Listing At: | NSE,BSE |
Promoters:
Promoters of Manappuram Finance Limited NCD Company are:
Mr. V.P. Nandakumar
Mrs. Sushama Nandakumar
Financials:
| Sr. No | Particulars(Cr.) | FY18 | FY17 | % growth |
| 1 | Income from operations | 3,423.36 | 3,387.69 | 1.05% |
| 2 | Profit before tax | 1,017.01 | 1,165.72 | -12.76% |
| 3 | Profit after tax | 668.41 | 758.493 | 11.88% |
| 4 | AUM | 15,764.80 | 13,657.20 | 15.43% |
| 5 | Net Worth | 3,836.21 | 3,361.80 | 14.11% |
| 6 | ROA ( % ) | 4.04 | 5.4 | -- |
| 7 | ROE ( % ) | 17.81 | 16.5 | -- |
Credit Rating:
The NCDs proposed to be issued pursuant to this Issue have been rated “CARE AA/Stable” by CARE Ratings Limited (“CARE”) for an amount of up to ₹ 10,000 million and have been rated “BWR AA+/Stable” by Brickwork Ratings India Private Limited (“Brickwork”) for an amount up to ₹ 10,000 million. The rating of the NCDs by CARE and Brickwork indicates high degree of safety regarding timely servicing of financial obligations. The ratings provided by CARE and Brickwork may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions.
Interest Rates:
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
| Interest Type | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed |
| Interest Payment | Cumulative | Monthly | Monthly | Annual | Annual | Annual | Cumulative | Cumulative | Cumulative | Cumulative |
| Tenor | 400 Days | 36 Months | 60 Months | 24 Months | 36 Months | 60 Months | 24 Months | 36 Months | 60 Months | 2557 Days |
| Coupon | NA | 9.60% | 10.00% | 9.85% | 10.00% | 10.40% | NA | NA | NA | NA |
| Effective Yield | 9.70% | 10.02% | 10.46% | 9.85% | 9.99% | 10.39% | 9.85% | 10.00% | 10.40% | 10.40% |
| Redemption Amount | 1106.83 | 1000 | 1000 | 1000 | 1000 | 1000 | 1206.81 | 1331.52 | 1640.82 | 2000 |
Post Tax returns:
(i) Sold after Maturity The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individuals.
(ii) Sold Before Maturity If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold with in a period of 12 months from the date of allotment, short term capital gains / loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains / loss (LTCG).
Recommendation:
Review and Recommendation of Manappuram Finance Limited NCD from IZ Team is: 3/10 (Avoid)
1-5: Good
5-7: Fair
7-10: Excellent
LIVE SUBSCRIPTION FIGURE OF MANAPPURAM NCD
Lead Manager of Manappuram Finance Limited NCD:
- A. K. Capital Services Limited
- Edelweiss Capital Limited
Registrar of Manappuram Finance Limited NCD:
- Link Intime India Private Limited
Discussion on Manappuram Finance Limited NCD:
7 Comments
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Hi,
Can someone please help me with the BSE / NSE Scrip Code ( For Zerodha) for this instrument? I\d be grateful….
Will provide you …. wait for the update..
22nd Nov issue closed, so After 10 days, there would be Allotment & listing. So code is not avialable as yet. We will update it here..
Hi,
Can you please update the BSE / NSE code for “series 5 ” – “3 Years Annual Interest” option for this NCD? Also let me know of the interest payment date for the same.
Also it would be of great help if you could let me know of any good AA+ (Or above) rated NCDs that can be bought from the open market below the issue price. Awaiting your reply. Thank you.
Please do not buy any NCD as lot of negativity is there in the market. This NCD is AA/AA+ rated not even AAA or AAA+. Plus rising bond yields will impact bond prices in coming time.
Ok thanks