10.15% MANAPPURAM FINANCE NCD JAN 2019 PUBLIC ISSUE:-
By: Education Consultant
Tags: Finance, Investing, Fixed Income, Ncds, Investors

Issue start date: 28-Jan-2019

Issue end date: 27-Feb-2019. However, based on oversubscription it can get close before that.

Tranche II NCD’s are available in 7 options. It offers NCD for 3 years, 5 years and 86 months (2,617 days).

Interest rates are between 9.35% to 10.15%.

These are secured NCDs.

Interest payable every month, every year and on a cumulative basis depending on the option chosen by the investor.

The face value of the NCD bond is Rs 1000.

The minimum investment is for the 10 bonds. Means, you need to invest for a minimum of Rs 10,000. Beyond this, you can invest in multiples of 1 bond.

These NCD bonds would be listed on BSE. Hence, these are liquid investments

NRI’s cannot apply to this NCD subscription.

These NCD’s are rated as CARE AA/Stable by CARE Ratings and BWR AA+ Stable by Brickwork Ratings.

ABOUT MANAPPURAM FINANCE LIMITED

Manappuram Finance Limited is one of the leading and topmost names in nonbanking finance corporation NBFC.

The company lends loans against the pledge of household and/or used gold jewelry and provide short-term personal and business gold loans primarily to retail customers who require immediate availability of funds, but who do not have access to formal credit on an immediate basis.

Its Gold Loan portfolio as of March 31, 2018, consists of approximately 2.25 million customers aggregating a principal amount of ₹ 117,349.82 million in Gold Loans, which accounted for 76.21% of its total loans on a consolidated basis.

As of June 30, 2018, they disbursed Gold Loans to customers from a network of 3,331 branches of the company in 28 states and union territories of India, including 2,236 branches in the southern states of Andhra Pradesh, Telangana, Karnataka, Kerala and Tamil Nadu.

Why to Invest?

investors should keep in mind that informed decision will help you gain profits.

Let us find out why the investor should consider investing their hard earned money in such NCD

The company has witnessed consistent and remarkable profits in the last 3 years. Its profits were at Rs 337 Crores in FY16 Vs Rs 700 Crores in FY18.

These Nonconvertible debentures usually offer lucrative interest rate where you can avail interest rate up to 10.15%

In an event of nonperformance of the company and the company gets closed for some reasons, NCD investors would be getting preference in the repayment of capital along with interest.

Why not invest in NCD?

IL&FS have created a fuss in the minds of the investors whether to invest in such NCD companies.

The Company and its director are involved in certain legal and other proceedings including criminal proceedings in India and may seem certain liabilities as a result of the same.

The company failed to maintain its growth

volatility in the market price of the gold may adversely affect the financial condition of the company, cash flows and results of operation

Its business is subject to various rules and legislation. it is to be noted that future regulator amendments have a material adverse effect on its business.

The financial performance is vulnerable to the interest rate risk. in case the company fails to manage or a company’s inability to maintain the interest rate risk

The company may not be able to realize the full value of the pledged gold. Which exposes us to the financial losses

Company and its subsidiaries are subject to the inspection from RBI and NHB. The company non-compliance with RBI or NHB operation may hamper its subsidiaries business.

A few of its subsidiaries and group companies have incurred losses, which may have an adverse effect on its reputation and business

To Know more regarding this, please check-10.15% Mannapuram Finance NCD 2019