By Susanna Moon
Chicago, Aug. 11 - Manappuram Finance Ltd. said it plans to sell up to Rs. 7.5 billion of redeemable debentures, which includes an over-subscription amount of up to Rs. 3.5 billion.
The subscription period will run from Aug. 18 through Sept. 5. The board of directors has an option to close early.
There are two investment options, and the yield to maturity is up to 12.56% per year.
Under the first option, the maturity is 400 days from the deemed date of allotment and the maturity amount per Rs. 1,000 bond is Rs. 1,132.25, resulting in a yield to maturity of 12% per year.
The other option has a maturity of 24 months from the deemed date of allotment. Interest is 12% per year for category 1 and 2 holders, and it is 12.2% per year for category 3 holders. The yield to maturity is 12.34% per year for categories 1 and 2, and it is 12.56% for category 3.
Proceeds will be used for financing activities including lending and investments and for business operations including capital expenditure and working capital.
Morgan Stanley India Co. Private Ltd., A.K. Capital Services Ltd., Axis Bank Ltd. and Icici Securities Ltd. are the lead managers. RR Investors Capital Services (P) Ltd., Karvy Investor Services Ltd. and SMC Capitals Ltd. are the co-lead managers.
The proposed bonds have been rated CARE AA- by Credit Analysis and Research Ltd. and BWR AA- by Brickwork Ratings India Pvt. Ltd.
The non-banking finance company is based in Thrissur, India.
| Issuer: | Manappuram Finance Ltd.
|
| Issue: | Redeemable debentures
|
| Amount: | Rs. 4 billion
|
| Greenshoe: | Rs. 3.5 billion
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| Managers: | Morgan Stanley India Co. Private Ltd., A.K. Capital Services Ltd., Axis Bank Ltd. and Icici Securities Ltd. (lead); RR Investors Capital Services (P) Ltd., Karvy Investor Services Ltd. and SMC Capitals Ltd. (co-lead)
|
| Ratings: | Credit Analysis and Research Ltd.: CARE AA-
|
| Brickwork Ratings India Pvt. Ltd.: BWR AA-
|
|
|
| Option 1
|
| Maturity: | 400 days
|
| Yield: | 12%
|
|
|
| Option 2
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| Maturity: | 24 months
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| Coupon: | 12% for category 1 and 2 holders, 12.2% for category 3 holders
|
| Yield: | 12.34% for category 1 and 2 holders, 12.56% for category 3 holders
|
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