Credit rating agency, CARE has assigned ‘AA-‘rating to the proposed Non-Convertible Debenture (NCD) issue of Manappuram Finance (MFL’s) for Rs 750.00 crore. Substantial fall in gold loan prices, competitive positioning of the company, scale of operations, business diversification and change in regulatory scenario are key rating sensitivities.
The rating factors in MFL’s strong positioning and long track record of the promoters in the business. The rating also factors in the robust risk management systems and moderate but growing scale of operations of the company.
Manappuram Finance (earlier known as Manappuram General Finance and Leasing) is one of the largest gold loan companies in India (operating from Valapad, Kerala) with assets under management of Rs 7,482 crore as on March 31, 2011. The company operates through 1,795 branches spread across 19 states of India (as of December 31, 2010). Gold loans account for more than 99% of its business.
| Company Name | CMP |
|---|---|
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| Shriram Finance | 1010.75 |
| Aditya Birla Capital | 340.15 |
| Chola Invest & Fin. | 1568.70 |
| Tata Capital | 337.35 |
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