Manappuram Finance board nods fund raising up to Rs800cr via allotment of debt securities; Stock climbs 4%

28 Jan 2022 , 01:33 PM

Manappuram Finance Ltd stocks in the fast lane on Friday after it has informed that Financial Resources and Management Committee of the Board of Directors of the Company at its meeting held on January 28, 2022 approved the allotment of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of face value of Rs.10,00,000/- each for an amount of Rs800cr on private placement basis to be Listed on BSE Ltd

The Coupon Rate is 6.93% p.a and the Coupon Payment Frequency will be Annual.

As per regulatory filing, the principal amount of the Debentures to be issued together with all interest due on the Debentures shall be secured by a first ranking pari-passu charge on all current assets, book debts, receivables (both present and future) of the Company, including all rights in relation to present and future gold loans of the Company, created in favour of the Debenture Trustee (“Hypothecated Assets”), as specifically set out in and fully described in the Debenture Trust Deed, except those receivables specifically and exclusively charged in favour of certain existing charge holders, such that a security cover of 100% of the outstanding principal amounts of the Debentures and interest thereon is maintained at all times until the maturity date.

Upon occurrence of an Accelerated Redemption Event, the Debenture Trustee may, acting on the instructions of any Debenture Holder requiring a mandatory redemption (“Accelerating Debenture Holders”) with a notice to the Issuer (“Accelerated Redemption Notice”), require the Company to redeem in full all the Debentures held by the Accelerating Debenture Holders then outstanding by paying an amount equal to the mandatory redemption amount in respect of each Debenture held by such Accelerating Debenture Holders.

The Company will make the payment of the accelerated amounts, within ten calendar days of receipt of the Accelerated Redemption Notice, without prepayment penalty.

At around 1:32 PM, Manappuram Finance was trading at Rs159.95 per share up by Rs6.55 or 4.27% on Sensex.