Manappuram Home Finance, a subsidiary of Manappuram Finance, on Monday issued non-convertible debentures (NCDs) via public issue to raise Rs 200 crore. The object of the issue is to utilise at least 75% of the net proceeds for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the company and a maximum of up to 25% towards general corporate purposes.
The base size of the issuance is Rs 100 crore with an option to retain over-subscription of up to Rs 100 crore. The company issued NCDs in seven different options with coupon rates between 9.75% and 10.65% depending upon the tenure.
The minimum application is of 10 NCDs amounting to Rs 10,000 collectively across all options of NCDs and in multiples of one NCD of face value of Rs 1,000 each after the minimum application. The tenure of the issuance varies between 36 months and 2,500 days (approximately seven years).
The issue opened on September 30, 2019, and is scheduled to close on October 29, 2019, with an option of early closure or extension as decided by the company's board. These NCDs are rated as 'AA-' by CARE Ratings, indicating that the instruments have high degree of safety regarding timely servicing of financial obligations and further they carry very low credit risk.
The company is focused on providing affordable housing finance primarily in Tier II and Tier III cities and towns in India. The company offers two basic products - home loan and loan against property.