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Manappuram Finance likely to raise Rs 750 crore in rising interest rate regime

12 Aug 2011 Evaluate

Manappuram Finance, the Kerala-based leading non banking finance company engaged in the gold loan business is likely to raise Rs 750 crore through bond issue and join a growing breed of financiers in a rising interest rate regime and increasing market instability. The non-convertible debenture issue, opening on August 18 and closing on September 5, offers interest rate up to 12.20% annually on the two-year bond. The face value of each bond is Rs 1,000 with a minimum subscription of five bonds and will be listed on the Bombay Stock Exchange.

The fund raised will be utilized for various financing activities, including investments, lending, capital expenditure and working capital requirements.  The company has enough capital to take its loan book to Rs 15,000 crore in one year and out of that Rs 2,000 crore will be raised from this bond issue.

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