The Non-banking financial company is incorporated in the year 1992. The origin of the company was in the coastal village Valapad (at Thrissur district) by Mr. V.C Padmanabhan. In the beginning, the firm was basically involved in the business of pawn-broking and money lending work. Since then the company has crossed thousands milestone. Now, the company is quite established and popular in making the business of gold finance. They provide short-term personal as well as business loans against gold. Those who do not have access to the formal credit on an immediate basis can easily get the loans against gold from the company. In India, there are few established gold loan providing non-banking financial company and Manappuram finance is one of them. As the article title suggests, it covers Manappuram Finance NCD Review along with the issue details, prospectus link, fundamental ratios. So, let’s start with the issue details of Manappuram Finance.
Manappuram Finance NCD Review Issue Details
- The issue opens on- Oct 24, 2018
- The issue close on- Nov 22, 2018
- Issue Type: Fixed Price Issue NCD
- Face value: Rs. 1000 Per NCD
- Issue size: NCD’s of Rs. 1000
- Issue size: Rs.1,000.00 Crore
- Issue price: Rs. 1000 Per NCD
- Market lot: 1 NCD
- Listing At: BSE
- Minimum order quantity: 10 NCD
- DRHP: Click here
Objectives of Issuing NCD
- For the lending purpose, NCD is being issued.
- Besides the lending purpose, there are financing, repayment/payment objectives behind issuing the NCD.
- The general corporate purposes like brand name and image also other purposed of issuing NCD.
- If a company wants to raise the capital without raising the share capital, it goes for issuing NCD.
- NCD or non-convertible debenture has high interest rate in comparison to convertible debentures.
- Apart from the above objectives, there are other purposes like debt and rent payment, sudden financial emergency etc.
About Manappuram Finance
- According to the CRISIL report, Manappuram Finance comes under the category of major NBFC (Non-banking financial company) players in the gold finance business.
- As per the portfolio of March 31, 2018, the numbers of customers reach approx 2.25 million that aggregating a principal amount of 117,349.82 million in gold loans.
- The gold loan which accounted for 76.21% of the company’s total loans (consolidated basis).
- According to 30th June 2018 data, the company disbursed gold loans to the customers.
- The company has more than 3,331 branches in all over 28 states as well as union territories in India. It has more than 2,236 branches in the southern states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana.
- The companies headquarter is in the southern state, Kerala.
- The company has also spread its wings in the microfinance business and insurance broking through the company’s subsidiary MAIBRO.
Financial Products of the Company
Financial products of the company include:
- Online gold loan
Online gold loans service offers loans up to Rs. 1.5 cr. Customers need to pay interest only for the exact number of days. The liquidity facility is quite simple along with 100% safety and security.
- Gold loan
Here, also customers need to pay interest for the exact period of loan and days. The company has several schemes for different income group.
- SME finance
The company provides higher loan amount for SME (Small and medium enterprises) at the most competitive interest rate. With easy approval, flexible and speedy repayment options make the loans easier.
- Forex and money transfer
The company’s fast and easy money transfer process without any service charge spread the network all over the branches in the country.
- Commercial vehicle loan
In the particular service, maximum tenure is for 60 months. Minimum loan amount starts from 1 lac.
- Other Services
Competitive Strength of the Company
- The company has gained a reputation in the gold financing business with a long operating history.
- Speedy and flexibility of gold loans, advanced customer services.
- widely spread network and branches.
- In-house training facilities.
- Efficient management term.
- Build the brand image stronger.
- Making a more innovative strategy in the gold loan service.
- Expanding the business network of the company.
- Strength the technology platform as well as robust the management team of the company.
- Retain the talent and attract new possibilities.
Address: IV/470A (Old) W/638A(New),
In “Manappuram House”, Valapad,
At Thrissur 680 567
Company Management Team
- Independent and Non-Executive Chairman: Jagdish Capoor
- Managing Director and Chief Executive Officer: V.P.Nandakumar
- Director: B. N. Raveendra Babu
- Nominee Director: E. A. Kshirsagar1
- Independent Director: P. Manomohanan
- Independent Director: V. R. Rajiven
- Independent Director: Dr. Amla Samanta
- Independent Director: V.R. Ramachandran
- Non-Executive Director: Gautam Narayan
Financial Statement of the Company
In order to state the Manappuram Finance NCD Review financial statement is necessary:
Manappuram Finance NCD Review
The above attached financial statement reflects the profit-loss of the company. It states in the year 2017, the profit level reached the maximum level. Though the fiscal years 2017 and 18 profit was almost the same and quite higher than the previous years. Last FY 2018 profit statement of the company is 7,001.69. According to the statement, the company is in the development stage. The profit level is improving with the passing year.
Now, have a look at the prospectus of the company. The company’s earnings per share in the last financial year is 8.32 (basic EPS) and diluted EPS is 8.30. Though in every company there are other ratios like P/E ratio, RONW, nav/share, these are not reflected in the company prospectus. According to 2018 data, paid-up equity capital is 168.51 cr. Hence, based on our analysis and data, Manappuram Finance NCD Review is NEUTRAL. Investors may try it as a long-term investment. The particular NCD is not suitable for short-term. It is advised to apply it for a long-term view.