The NCDs will have an option to retain over-subscription up to Rs 150 crore. The debentures will have a tenure ranging from 400 days to 75 months and will have an effective yield up to 12.13 per cent per annum, V P Nandakumar, Managing Director and CEO, Manappuram Finance Ltd, told reporters.
"There is a clear revival in the gold loan business in recent months and Manappuram Finance is well positioned to regain the momentum. The funds raised by this issue will help us to drive growth and capitalise on the improving sentiments," he said.
Manappuram Finance Ltd reported a net profit after tax of Rs 226.01 crore for FY'14 and a net worth of Rs 2,492 crore as on March 31, 2014. The company has a capital adequacy of 27.68 per cent as of March 31 against the statutory requirement of 15 per cent and has a long term credit rating of A+/Stable from CRISIL for the current issue for an amount of up to Rs 300 crores.