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Aug 11, 2011, 06.51 PM IST | Source: PTI

Manappuram Finance to raise Rs 750cr from bonds

Pure-play gold loan company Manappuram Finance has joined a growing breed of financiers opting to raise debt in a rising interest rate regime and increasing market volatility, and said it will raise Rs 750 crore through from bond issue.

Manappuram Finance to raise Rs 750cr from bonds

Pure-play gold loan company Manappuram Finance  has joined a growing breed of financiers opting to raise debt in a rising interest rate regime and increasing market volatility, and said it will raise Rs 750 crore through from bond issue.

The non-convertible debenture issue, opening on August 18 and closing on September 5, offers interest rate up to 12.20% annually on the two-year bond.

The face value of each bond is Rs 1,000 with a minimum subscription of five bonds and will be listed on the Bombay Stock Exchange.

The fund raised will be used for various financing activities, including investments and lending, Manappuram Finance managing director I Unnikrishnan told reporters.

It will also be used for capital expenditure and working capital requirements, he said.

The Kerala-based company, Unnikrishnan said, has enough capital to take its loan book to Rs 15,000 crore in one year and out of that Rs 2,000 crore will be raised from this bond issue.

As of June 30, the company's loan portfolio stood at Rs 9,000 crore and the capital adequacy at 29.3%, which is much above the Reserve Bank requirement of 15%.

Recently, many NBFCs, including Shriram Transport Finance , Muthoot Finance and India Infoline Financial Services among others have tapped the bond market to raise funds.

Manappuram Fin stock price

On July 25, 2014, Manappuram Finance closed at Rs 22.65, down Rs 0.25, or 1.09 percent. The 52-week high of the share was Rs 25.65 and the 52-week low was Rs 11.51.


The company's trailing 12-month (TTM) EPS was at Rs 2.69 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 8.42. The latest book value of the company is Rs 29.62 per share. At current value, the price-to-book value of the company is 0.76.

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