Shares of Manappuram Finance Ltd on the fast track on Friday after informing that the financial resources and management committee of the company’s board of directors at its meeting on January 28, 2022 approved the allocation of secured securities, rated, Listed, Redeemable, Non-Convertible Debentures with a face value of Rs.10,00,000/- each for an amount of Rs800cr on a private placement basis to be listed on BSE Ltd
The coupon rate is 6.93% per annum and the coupon payment frequency will be annual.
In accordance with the regulatory filing, the principal amount of the debentures to be issued together with all interest due on the debentures will be secured by a first ranking pari-passu charge on all current assets, book debts, receivables (present and future) of the Company, including all rights in respect of present and future Gold Loans of the Company created in favor of the Trustee of the Debentures (“Mortgaged Assets”) as specifically set forth and fully described in the Indenture of the Debentures, except for claims specifically and billed exclusively in favor of certain existing officeholders, so that a security cover of 100% of the principal amounts outstanding of the Debentures and interest thereon is maintained at all times until the due date.
Upon the occurrence of an Accelerated Redemption Event, the Debenture Trustee may, acting on the instructions of any holder of Debentures requiring mandatory redemption (“Accelerated Debenture Holders”) with notice to the Issuer (“Redemption Notice Accelerated Debenture”), require the Company to redeem in full all Debentures held by Accelerated Debentureholders then outstanding by paying an amount equal to the Compulsory Redemption Amount in respect of each Debenture held by such Accelerated Debentureholders.
The Company will make payment of the accelerated amounts, within ten calendar days of receipt of the Accelerated Redemption Notice, without prepayment penalty.
At around 1:32 p.m., Manappuram Finance was trading at Rs159.95 per share up Rs6.55 or 4.27% on Sensex.