Manappuram Finance Limited (MFL) is one of the major NBFC players in the gold finance business in India. MFL provides loans against the pledge of household and/or used gold jewellery and provide short-term personal and business gold loans ('Gold Loans') primarily to retail customers. MFL have decades of established history in the money lending business, mainly in small-scale money lending against household and/or used gold jewellery. It has been in the gold loan financing business since 1999. Historically, the company has also provided other related services, including asset finance, money transfer and foreign exchange, sales of gold coins and business and personal lending. MFL’s lending functions are supported by an in-house, custom developed information technology platform that allows them to, among other things, record relevant customer details, approve and disburse the loan. The technology platform also handles internal audit, risk monitoring and management of the relevant loan and pledged gold related information. MFL’s Gold Loan customers are largely individuals from rural, semi-urban areas and metro cities, including, Mumbai, Delhi, Chennai and Bengaluru, who typically require funds for social obligations, emergencies, agriculture-related activities, small scale business operations or consumption purposes. The other business verticals of the company include Vehicle and Equipment Finance Business,Payments business, SME business and fee based services including forex and money transfer. Further, MFL has also expanded into other business verticals such as micro finance business through its Subsidiary AML, housing finance business through its subsidiary MHFLand insurance broking through our Subsidiary MAIBRO. The company offers coupon rates up to 9.60% - 10.40% depending on the tenures - 400 days, 02 years, 03 years, 05 years and 2557 days. The mode of interest payments which is either Monthly, Annually or cumulative as per the choice of investors. In the Fiscal Years 2014, 2015, 2016, 2017 and 2018 and the three month period ended June30, 2018, the total consolidated revenue was Rs. 2,111.83 crore, Rs.1,993.43 crore, Rs.2,373.83 crore, Rs. 3,408.92 crore, Rs. 3,476.56 crore and Rs. 947.18 crore, respectively, and the consolidated profit for the year for same periods was Rs. 225.98 crore, Rs. 271.32crore, Rs. 353.37 crore, Rs. 755.85 crore, Rs. 670.89 crore and Rs. 200.55 crore, respectively. Gross non-performing Gold Loans assets were 1.22%,1.18%, 0.97%, 2.01%, 0.39% and 0.39%of the Gold Loans portfolio as of March 31, 2014, 2015, 2016, 2017 and 2018 and the three months period ended June 30, 2018, respectively. These NCD issue is graded 'CARE AA / Stable' by CARE Ratings Limited for an amount of up to Rs 1000 Cr by latter dated 8th October 2018, and 'BWR AA+ / Stable' by Brickwork Ratings India Private Limited. The rating of the NCDs by CARE and BWR indicate that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
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