Manappuram Home Finance NCD From Sep 30, 2019 To Oct 29, 2019

Manappuram Home Finance NCD From Sept 30, 2019 To Oct 29, 2019

Manappuram Home Finance NCD September 2019

At the end of this month, few issues lined up for listing. Manappuram Home Finance Ltd came up with a new mutual fund scheme. It would open for subscription on 30th September 2019. The scheme offers high-interest rates of up to 10.65%. At present interest rates are low in the market, so the high-interest rate of Manappuram Home Finance NCD will attract the investors who seek to invest in the short-term to medium-term.

Basic Details of Manappuram Home Finance NCD

Issue Open Date  Sep 30, 2019 – Oct 29, 2019
Security Name Manappuram Home Finance Limited
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Credit Rating CARE AA-/Stable
Issue Price Rs 1000 per NCD
Minimum Lot size 10 NCD
Market Lot 1 NCD
Listing At BSE
Payment Frequency Monthly, Annual, and Cumulative

Manappuram secured issue opens for subscription on Sep 30 and will close on 29th October. The NCD raised about Rs 100 crore with an option of retaining over Rs 100 crore. The scheme will available in seven different options. Manappuram offers secured, redeemable, non-convertible debentures NCD. Interest rates are ranged between 9.75% to 10.65% and Yield range between 10% to 10.65%.

It offers NCD for 3 years, 5 years, and 2,500 days (6 years 10 months). The interest payables available every month, year, and cumulative. The payable options depend on the option chosen by the investor.

The face value of the issue is Rs 1000 per NCD bond. One will need to invest a minimum of Rs 10,000 and in multiples of 1 bond, mean invest for 10 NCD bonds. 

Manappuram NCD will list on BSE. Hence these are liquid investments.

These NCDs are not available for NRIs.

Objects of the Issue

The net proceeds of the Issue towards funding for onward lending, financing, and repayment of interest and principal of existing borrowings. Moreover for General Corporate Purpose.

NCD Credit Rating

The proposed NCDs have been rated as ‘CARE AA-, Stable’ by CARE Ratings Limited.  This type of rating indicates that instruments with this rating are considered to have a high level of safety about timely servicing of financial obligations.

Manappuram Finance NCD Coupon Rates

 Series  Category  Tenures (Months)  Interest Payables  Coupon Rates (interest) Individuals  Effective Yield  Maturity Value
 I  Secured  36  Monthly  9.75%  10.20%  1,000
 II  Annually 10.00%  10.00%  1,000
 III  Cumulative  NA  10.00%  1,331
 IV  60  Monthly  10.25%  10.75%  1,000
 V  Annually  10.65%  10.65%  1,000
 VI  Cumulative  NA  10.65%  1,659
 VII  2500 days  NA  10.65%  2,000

The NCD allocated to various investors such as 5o percent of shares allocated for retails investors. Moreover, 10% for Institutional investors and 40% for Non-institutional investors.

These NCDs offer attractive interests. Hence, this is a secured NCD. Although, Manappuram business is particularly exposed to volatility in interest rates. If any change occurs in its portfolio that will affect its business. Moreover, they have incurred losses from fiscal 2015 to 2018.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully before investing.

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