Manappuram Finance, via a recent exchange filing, announced that its board has approved the allotment of non-convertible debentures (NCDs) aggregating to Rs 1,100 crore on private placement basis. The financial resources and management committee of the board of directors approved the allotment of 1.10 lakh rated, listed, secured, redeemable NCDs having a face value of Rs 1 lakh each aggregating to Rs 1,100 crore.
The NCDs have a coupon rate of 9.22% per annum with the date of allotment being 13th March 2023 and maturing on 13 March 2033. The company said that the entire proceeds of the issue will be utilized for the augmentation of its resources and towards onward lending in gold loan, loan against properties, and vehicle financing.
The company’s stock started its trading session at Rs 110.25 and currently trades at Rs 109.65. Comparing the current price levels to the previous closing price, the stock witnessed a downfall of approximately 1.08 percent. Evaluating the 6-month performance of the company’s stock, it has been in the green and gained around 5.3 percent ranging from Rs 103.95 to current levels.
Manappuram Finance is a Non-Banking Finance Company (NBFC) that provides a wide range of fund-based and fee-based services including gold loans, money exchange facilities, etc. It has diversified its product streams from a pure gold lending company to a more diversified financial company. Their current product segments include gold lending, microfinance, home loan finance, and CV finance. Manappuram was the first company to start online gold lending in 2015.
Having a quick walkthrough of the company’s financials, the revenues have gone up from Rs 1,696 crores in Q2 to Rs 1,714 crores in Q3. On a contrasting note, the net profit figures have reduced from Rs 409.5 crores in Q2 to Rs 393.5 crores in Q3.
Along with the above discussed parameters, the profitability ratios of the company have shown a downward trend. The ROE figures have gone down from 26.6 percent in FY 20-21 to 17 percent in FY 21-22. Moreover, the ROCE figures have reduced from 15.5 percent in FY20-21 to 12.1 percent in FY 21-22.
The debt to equity ratio of the company has reduced from 3.11 in Q2 to 2.89 in Q3 showing and remains comparatively high as compared to the industry standards.
Promoters of the company have marginally increased their stakeholding from 35.18 percent in Q2 to 35.2 percent in Q3. Adding on the same, FII’s have too increased their stakes in the company from 28.36 percent in Q2 to 30.07 percent in Q3.
Written by Amit Madnani
