Product Note
F I N A N C E
Earn monthly
interest
double your amount in
just 63 months..
or
MANAPPURAM FINANCE LTD
NCDs SCHEME DETAILS
Scheme - B: Cumulative Scheme (Interest on redemption)
Special
Fore-closure facility
Period
Others
Category**
before Maturity
Scheme - A: Non Cumulative Scheme (Monthly Interest Scheme)
Special
Fore-closure facility
Period
Others
Category**
before Maturity
Category I
13 Months
13.00%
Category I
12.50%
Nil
After 12 months at
Company' Sole
discretion. Interest
shall be 2% less
Category II
24 Months
13.50%
13.00%
Category III
60 Months
13.50%
13.00%
Category IV
Multiplier NCD
(Doubling Scheme)
13 Months
13.50%
13.00%
Nil
After 12 months at
Company' Sole
discretion. Interest
shall be 2% less
Category II
24 Months
14.00%
13.50%
Category III
60 Months
14.00%
13.50%
Double your money in 63Months
Loan facility will be available after 90 days from the date of allotment. Maximum loan amount will be 85% of the NCD. amount. Interest on loan shall be 2% more than the
contracted rate on the NCDs
General Term and Conditions
1
The opening and cIosing date of Issue will be
01st and 30th of every month
2 Minimum duration of the NCD Will 13 months.
3. NCD amount can be coIIected either by Cheque
or by NEFT/RTGS and A/c payee DD can be
accepted In exceptional cases after prior
approval from our EO & Dy.CEO based on the
recommendation of Company
Secretary.
4. Cheque of third party within the family can be
accepted for NCD for the customer, but interest
amount and settlement proceeds shall be paid
to the first applicant only.
5. NCD Interest will be paid by way of Cheque or
NEFT
6. The standing instruction from the customer to
exercise lien on the settlement value of NCD
held by them in the Company to
7.
Minimum subscription should be Rs. 10000/and multiplies of RS.1000/8. Application for the Debentures must be in tile
prescribed form only and to be completed in
Block letters in English as per
the instructions
therein Potential
Investors are advised to read the instructions in
detail before filing the
application.
9. The application form and term sheet shall be
uploaded in the system after
gelling signature from the Investors and same
shall be verified by NCD Servicing Department at
HO.
10. Individual resident in India Corporate
Bodies/Partnershlp Firms (In the name of
partners only) can apply for allotment of NCDs.
Individuals shall comply with the applicable KYC
norms while other applicants shall provide the
Earn 0.50% additional rate of interest for
the following categories of investors




Mandatory Documents:
 Duly filled and signed application form.
 KYC documents (Valid voter ID/Passport/
Driving license/Adhar) Self Attestted
 Nominee form.(If add nominee)
 All holders Pan Card xerox copy Self Attestted
 Term Sheet (Terms and conditions of (NCD)
 Bank pass book front page for NEFT updation
 All holders cancel cheque
 15G / 15H if the customer is not a tax payee.
 If holder name is not printed on cheque leaf
then holders bank statement/IFSC code is must
 Incase of IFSC Code missing on Cheque then
Bank Passbook copy mandatory with IFSC code
COMPANY PROFILE
Manappuram Finance Limited, has in recent
years, emerged as a leading non-banking financial
company (NBFC) in India under the stewardship of
Shri V.P. Nandakumar, MD & CEO of the Company.
Manappuram's origins go back to 1949 when it
was founded in Valapad (a coastal village in the
Thrissur District of Kerala) by the late V.C.
Padmanabhan, father of Shri Nandakumar. Its activity
was mainly pawn broking and money lending carried
out on a modest scale. The principal asset of the
company was the integrity and foresight of its
Founder and among the people of the area it soon
acquired a reputation as a safe-haven for their
investments.
Shri Nandakumar took over the reins of this one
Branch business in the year 1986 when his father
expired. Since then, it has been a story of
unparalleled growth, with new milestones being
crossed every year.
Manappuram Finance Ltd. was incorporated in
1992 (the original name was Manappuram General
Finance and Leasing Limited) with its registered office
at Valapad, in the Thrissur District of Kerala. It is
India's first listed and highest credit rated gold loan
company and widely recognised as a leading wealth
creator in the Indian stock market. Since inception,
the Company has maintained a consistently rapid
pace of growth. Today, it has around 3000 branches
across 26 states and UTs with Assets under
Management (AUM) of about Rs.11,600 cr, a
workforce of about 22,000 and a live customer base
of 16 lakhs (Data as of 31 Mar, 2012).
Money Honey Financial Services Pvt. Ltd.
Senior Citizens (Age 60 years & above)
Ex-service men or their widows
Central or State Govt pensioners
Employees of the company.
Foreclosure Facility Before Maturity
Category – I : It will not be redeemed before the
date of Maturity.
Category – II ,III and IV : After 12 months, at sole
discretion of the company. Interest shall be 2%
less.
SMS updates TO CUSTOMERS
from company




At the time of receipt of cheque
At the time of allotment
At the time of dispatch of original Certificate
At the time of crediting interest amount to
investor’s accounts
 Before 30 days of Maturity
 After crediting redemption proceedings to
the Bank accounts of the NCD holders
1st Floor, Nahar Singh Industrial Building, Opp Movie Star Cinema,
Ram Mandir Road, Goregaon (W), Mumbai - 400104.
Tel.: 022 - 26775869 / 26793273 Mob : 7738032704. Email : [email protected]
Product Note
Business & Financial Updates
F I N A N C E
RoA to settle at respectable level post the
full impact of new regulations
Over the past seven months, gold loan companies have been hit by a spate
of game changing regulations - LTV cap of 60%, stringent bilateral
assignments guidelines and higher Tier-1 capital requirement of 12% (to be
reached by end- FY14). In the initial phase of the adjustment process, AUM
growth has been severely impacted while contraction in NIM and RoA has
been limited. Though RoA would most certainly deteriorate through the
year, it is likely to settle at healthy levels of 3.5-4% in the longer term
supported by reasonable pricing discipline, cyclical decline in funding cost
and realization of operating efficiencies. Given the systemic importance of
gold loan companies, incremental regulations are likely to be less stringent
– a cap on cash disbursements can dilute financial inclusion.
Gross income Y-o-Y Comparison
Rs. In Million
Gross income for the FY 2011-12 was Rs. 27,759 Million, Up 120%, as against
Rs. 12,566 for the FY 2010-11
27,759
12,566
Manappuram unlikely to deliver a significant
decline in FY13 earnings
5,459
As per our estimate, Manappuram’s PAT could decline by 9% in FY13; in
contrast to a significant decline feared a quarter before. Structural reasons
behind our improved expectations now are 1) better earnings performance
in Q1 FY13 2) lower compression in portfolio yield (to settle near 23% v/s
21% expected earlier) and 3) strong operational response from the
company (stringent cost containment measures undertaken). Though profit
would continue to decline in coming three quarters, Manappuram would
still deliver RoA of 3.8-4% for the year on a flattish AUM. Except for
additional adverse regulations, we see minimal risk to similar RoA
performance in Fy14.
3,141
1,705
FY08
FY09
FY10
FY11
FY12
Net Profit Y-o-Y Comparison
Rs. In Million
Net Profit for the FY 2011-12 was Rs. 5,915 Million, Up 109%, as against Rs.
2,826 Million for the FY 2010-11.
5,915
Valuation to start discounting emerging business clarity
Manappuram’s valuation has witnessed wild gyrations in the recent past
driven by a mix of internal and external factors. While corporate governance
has been strengthened, the evolving business dynamics have been
reassuring. With major regulations behind, the key valuation driver for the
stock would be emerging business clarity. Lower LTVs, reducing assignments
and a high capital base (Tier-1 at 20%) are credit positives for Manappuram.
With undemanding valuation of 1x FY14 P/adj.BV, we retain BUY
recommendation.
2,826
1,197
476
279
Financial summary
Y/e 31 Mar (Rs m)
Total operating income
Yoy growth (%)
Operating profit (pre-provisions)
Net profit
yoy growth (%)
FY 11
8,424
146.8
4,622
2,827
136.1
FY 12
15,667
86.0
9,155
5,915
109.3
FY 13E
15,491
(1.1)
8,552
5,364
(9.3)
FY 14E
17,364
12.1
9,419
5,846
9.0
Fy08
FY09
FY10
FY11
Net worth
Rs. In Million
Net worth as on June 30, 2012 was Rs. 25.38 billion, Up 25%, as against Rs.
20.31 billion as on June 30, 2011.
23,801
19,240
EPS (Rs)
Adj. BVPS (Rs)
P/E (x)
P/Adj.BV (x)
ROE (%)
ROA (%)
Tier-1 (%)
Dividend yield (%)
3.4
23.0
11.4
1.7
22.3
4.8
26.7
1.6
7.0
27.9
5.5
1.4
27.5
5.3
20.7
3.9
6.4
32.8
6.1
1.2
20.7
3.9
20.4
3.1
7.0
38.2
5.6
1.0
19.3
3.8
19.6
3.1
Regd. Office
Manappuram House, P.O. Valapad,
Thrissur, Kerala - 680 567.
Telephone No: 0487 3107653, 3100558, 3050000. Fax: 2399298
Money Honey Financial Services Pvt. Ltd.
FY12
25,388
20,317
6,105
376
Mar 07
1,315
2,560
Mar 08
Mar 09
Mar 10
Mar 11
Jun 11
Mar 12
Jun 12
Capital Adequacy Ratio
Particulars
Tier 1 Capital
Tier 2 Capital
Total
30.06.11
31.03.12
30.06.12
22.47
2.34
24.84
20.64
2.74
23.39
22.47
2.53
25.01
1st Floor, Nahar Singh Industrial Building, Opp Movie Star Cinema,
Ram Mandir Road, Goregaon (W), Mumbai - 400104.
Tel.: 022 - 26775869 / 26793273 Mob : 7738032704. Email : [email protected]
Product Note
F I N A N C E
INSTRUCTIONS TO APPLICANTS
WHO CAN APPLY:
Individuals, Partnership Firms, Joint Stock Companies and Trusts with
Resident Indian Status can apply for these debentures. In case of minors, the
debentures can be subscribed and held only by natural guardian.
HOW TO APPLY
1.
Application Forms must be completed in full Block Letters in English. All the
columns to be filled properly.
2. Signature should be made in English or in any of the Indian languages.
Thumb impressions must be attested by an authorised
official of the
Company or by a Magistrate/Notary Public
under his/her official seal.
3. Application form duly completed in all respects must be lodged at the
Registered Office of the Company or at the Branches as per
address
given in the information Memorandum.
Cheque (s) I Demand Drafts should
be drawn in favour of "MANAPPURAM
FINANCE LIMITED" & crossed "A/c
Payee Only”
4. Outstation cheques, money orders, postal orders and stock invest will not
be accepted.
S. Application forms can be submitted to the Branches of "MANAPPURAM
FINANCE L1MITED”
Important Terms and Conditions for Subscription of NCO
1.
Terms of Issue : The issue of NCDs shall be guided by the accompanying
term sheet and the Information Memorandum.
2. Mode of Payment : The application money shall be paid to Manappuram
Finance Ltd. by an account payee cheque or by crediting to its account by
RTGS/NEFT etc.
3. Debenture certificate : A consolidated Debenture certificate will be issued
for the number of NCDs allotted to an applicant within 3 months from the
date of allotment.
4. Payment of interest and Redemption proceeds : interest will be paid on
application money from the date of receipt of cheque to the date
immediately preceding the date of allotment and will be paid within 15
days of allotment. Monthly interest and the redemption proceeds will be
credited to the bank account of the applicant electronically and in case the
bank particulars are not properly updated, payment will be by an account
payee cheque.
6. PAN CARD : copy of the card is compulsory-.
7.
Foreclosure : NCDs cannot be redeemed before its maturity and will be
guided by the Term Sheet and of the information memorandum.
8. Nomination: Only one nominee will be entertained at a time. Where NCO is
held in the joint names, the nomination shall be jointly made and the
nominee will be entitled to the redemption proceeds or
the interest only if all the joint holders are not alive at the relevant time.
Company reserves the right to demand the certified copies of death
certificate, any indemnity
from the nominees or of the joint holders while
paying the redemption
proceeds or interest on the demise of all or any
joint holders of NCDs.
9. Transfer and transmission : NCDs are transferable by way of endorsement
and delivery. However, no formal market exists for trading in these NCDs
being an unlisted instrument and company is not under an obligation to
arrange for a transferor or transferee. To transfer NCDs the transfer deeds
in the prescribed form shall be submitted to the company. If the transfer is
not intimated to the company at least 30 days in advance of the due date of
production of relevant documents of title and the NCO holders shall
approach the company for further details.
10. Lien : NCDs can be offered as security and the company will at its discretion
accept request for marking lien on NCDs. The application shall be made in
the prescribed form. The operation of lien shall be subject to the terms of
the company as provided in the Information memorandum.
11. Security and Creation of Charge : Debenture shall be secured by a floating
charge in favour ofTrustees of debenture holders on the gold loan, Hp, and
other receivables and other un encumbered current assets of the company
and the charge will be registered with the Registrar of Companies as per the
statutory provisions.
12. TDS: tax will be deducted from the payment of interest on application
money as well as of the debenture where the interest
payment for a
financial year exceeds the threshold limit.
However, applicants may submit
declarations in the prescribed form
(15G/15H) for exemptions from the
deduction of tax.
13. Loss of Certificate : If the original certificate is lost, or defaced, the
company will issue a duplicate certificate subject to such documentation
and indemnity as may de decided by the company from time to time.
14. Discharge of Certificate and its validity: NCDs holders shall surrender the
NCD certificate duly discharged by all joint holders at least 15 days before
the date of redemption of the NCD. However, in cases where the
certificates are not so discharged and the company has credited the
redemption proceeds in respect of the NCDs comprised in
a certificate to
the bank account of the holder or an account payee cheque
is issued, such
certificates will be invalid and un enforceable after the date
of redemption.
The holder shall not raise any claim on the company merely
on the ground
that he is in possession of such certificate.
15. Intimation of changes : company shall not be responsible for any loss or
damages happened to the NCD holders due to any change in their address
or bank particulars or any other relevant information if the changes are not
informed to the company at least 15 days in advance of the due date for
payment of interest or of redemption.
16. Company's obligations under the NCDs shall, at all times be subject to any
statutory changes or as per the directions of Ministry of Corporate Affairs,
Securities and Exchange Board of india, Reserve Bank of India or of the
Central Government or State Government during the tenure of the NCDs.
17. The terms and conditions mentioned above are not exhaustive, to read and
understand the full text kindly refer to the Information Memorandum of
this issue or contact the company.
Declaration of Applicant:
1.
I/We hereby declare that all the information furnished above is correct and
complete and shall duly inform the company changes. (If any, on them).
2. I/We declare that I/We had carefully read and understood the information
Memorandum for the issue of Secured, Non-Convertible, Redeemable
Debentures under Private Placements.
3. I/We understand that the Debentures are for a fixed term with a minimum
maturity period as specified in terms of issue and it cannot be Redeemed
before its due date at the option of the applicant(s).
4. I/We declare that the payment of interest/principal shall be as per the
opinion indicated in the application form and the changes,
if any will be
duly notified to the company well in advance. The company
shall not be
responsible for any loss or damages that may occure to the
applicants in
any manner due to the failure in notifying the company of
Disclaimer: Investors are advised to go through the financial reports of the company. You are requested to obtain all necessary information and go through the application form, letter of offer, and prospectus in details and consult your own advisor before
choosing your investment. We do not charge any fee for our services nor do we assure in any manner what so ever, timely payment of your investments or interest / dividend / gain there one.
Money Honey Financial Services Pvt. Ltd.
1st Floor, Nahar Singh Industrial Building, Opp Movie Star Cinema,
Ram Mandir Road, Goregaon (W), Mumbai - 400104.
Tel.: 022 - 26775869 / 26793273 Mob : 7738032704. Email : [email protected]
MANAPPURAM FINANCE LIMITED
Regd. Office: V/l04, Manappuram House, Valapad P.O, Thrissur, Kerala - 680567
Ph: 0487-3050100, 3050108, Fax:-2399298
Issue of Secured, Redeemable, Non- Convertible Debentures (NCDs) under Private placement
Broad terms of lssue
DB03A/12-13
Si.No.
Issue Terms
Particulars
1
Issue Size
400,000 Nos. Debentures of the face value of Rs. 1000/- per debenture aggregating to
Rs.400,000,000 with an option to retain over subscription up to Rs.250,000,000 so that the
aggregate issue size shall not exceed Rs.650,000,000.00
2
Issue Opening Date
01/Mar/2013
3
Issue Closing Date
15/Mar/2013 (company reserves the right to close the issue at an early date)
4
Tenure of securities
13M- (13 months tenure)
24M- (24 months tenure)
60M- (60 months tenure)
63M- (63 months tenure)
5
Interest Rate :
General Category
Scheme-A
13,months -12.50%
24,months -13.00%
60,months -13.00%
Scheme-B
13,months -13.00%
24,months -13.50%
60,months -13.50%
Special Category is entitled for higher rate of 0.5% over the general rate if the NCD is held by
them till the date of redemption.
Scheme -A Payment of interest monthely
Scheme -B Payment of interest on redemption
6
Redemption
Only on the due date of redemption
7
Deemed date of allotment
5th day from the closure ofthe issue
8
Trustees
9
Minimum application size
10 (ten) NCDs of Rs.1000 each (Rs.10,000 only) & in multiples of 1(one) NCD (Rs.1000) thereafter.
10
Interest on application Money
Interest on application money will be paid within 30 (thirty) days from the date of allotment.
T the interest will be calculated from the date of receipt of the cheque (If the cheque is cleared
within 5 (five) days from the date of receipt, otherwise from the date of realization of the
amount) to the date immediately preceding the date of allotment.
11
Call or Put option
No call or put option shall be available in respect of NCDs within the 13 (thirteen) months tenure.
A call and put option shall be available to the Company and to the applicant respectively in respect
of NCDs with more than 13 (thirteen) months tenure which can be exercised after a period of 12
(twelve) months from the date of allotment of the NCDs and after giving 30 (thirty) days notice to
the other.
12
Loan against NCD
The company reserves the right to give loan against the security of NCDs after a period of 90 days
from the date of allotment subject to a maximum limit of 85% of the NCD value and the tenure of
the loan in no case shall exceed the date of redemption of NCDs. Loan will carry interest which
will be 2% higher than the rate of interest of NCD.
Acceptance:
 Mr. V K Keralavarma FCA, FCS
Practicing Company Secretary
 Mr.V.Sajith, FCA, Chartered Accountant
Company
Applicant