Manappuram Finance – issue of Secured Debentures March – 2014 : Manappuram finance – one of the leading Gold loan company will raise Rs.100 crore through this issue.
Imp Dates:
- Issue Open Date: March 05, 2014
- Issue Close Date:March 25, 2014
Credit Rating : A+ from ICRA.which indicates adequate safety.
Interest Rates:
| Series | Tenure | Interest payment Frequency | Yield per annum % | Maturity value of Rs.1000 |
| I | 400 Days | Cumulative | 11% | 1121.70 |
| II | 24 Months | Monthly | 12.13 | 1000 |
| III | 24 Months | Annually | 12 | 1000 |
| IV | 24 Months | Cumulative | 12 | 1254.40 |
| V | 36 Months | Monthly | 12.94 | 1000 |
| VI | 36 Months | Annually | 12.50 | 1000 |
| VII | 36 Months | Cumulative | 12.50 | 1424.30 |
| VIII | 60 Months | Monthly | 12.13 | 1000 |
| IX | 60 Months | Annually | 12 | 1000 |
| X | 60 Months | Cumulative | 12 | 1762.30 |
| XI | 70 Months | Cumulative | 12.61 | 2000 |
One can view that this NCD issue offers different investment options – cumulative,annual interest payment and monthly interest payment option.For annual and monthly interest payment option,interest will paid out periodically and maturity value will be principle amount while for cumulative mode,interest and principle to be paid at maturity.
Security :Issue secured by mortgage over immovable property of company and receivables of the company.
Overall , interest rate offered is good but higher returns comes with commensurate credit risk. Though this issue is secured ,investors having understanding of credit risks associated with gold loan companies can think to invest .
