Manappuram Finance raises Rs 250 cr through bonds

Manappuram Finance on Thursday said it has raised Rs 250 crore by issuing bonds, and the amount will be utilised to pare its debt and shore up capital resources.

The financial resources and management committee of the company's board of directors in its meeting on Thursday approved the allotment of secured, rated, listed, redeemable, non-convertible debentures for an amount of Rs 250 crore on a private placement basis, the company said in a regulatory filing.

The bonds to be listed on the BSE bear an interest rate of 6.95 per cent per annum and are set to mature on December 30, 2024.

"The net proceeds from the subscription of the NCDs (non-convertible debentures) shall be exclusively utilised for refinancing of existing debt, augment the resources of the company and towards onward lending in gold loan, loan against properties, vehicle financing," Manappuram Finance said.

Shares of the company on Thursday ended at Rs 162.45 apiece on the BSE, down 1.19 per cent from the previous close.