Manappuram Finance board approves allotment of NCDs worth Rs 250 crore

Manappuram Finance Limited informed the exchanges on Friday that the financial resources and management committee of its board of directors has approved the allotment of 2,500 secured, redeemable, non-convertible debentures (NCDs).

The company said via a regulatory filing that the face value of each debenture is Rs 10 lakh, aggregating to Rs 250 crore in total, on a private placement basis. Meanwhile, tenure of this NCD is stated to be 18 months while, the allotment of debentures is scheduled to be on June 12. Nevertheless, the maturity date of this instrument is December 12, 2021.

The instrument carries a coupon rate of 8.75 per cent, which is to be paid on the maturity date, on an annual basis. The company, in its filing, stated that these NCDs would be secured with one time margin of the receivables of the company.

Since the time COVID-19 pandemic has begun, several companies have announced plans to raise money through debentures from the market in order to overcome liquidity crisis. As the companies are slowly resuming its operational normalcy, it requires fund to address various constraints.

Manappuram Finance Limited is a non-banking financial company (NBFC), engaged in offering gold loans, microfinance housing loans and commercial vehicle loans.

As on June 12 at 3.11 pm, the stock of Manappuram Finance was trading at Rs 145.70, up by 0.41 per cent against its previous day’s close of Rs 145.15 on BSE.