Manappuram Finance NCD Issue - August 2011

San Yad

Active member
#4
Anyone have done the research "which one is better"?

Manappurum NCD or Muthoot finance NCD in the current offer?

Alchemist, are you thinking to park in any?

And which one is more secured?


Happy Investing!
 
#5
Anyone have done the research "which one is better"?

Manappurum NCD or Muthoot finance NCD in the current offer?

Alchemist, are you thinking to park in any?

And which one is more secured?


Happy Investing!
Most likely I will not apply for Manappurum NCD. The reason being it is short term. I do not have money in my saving account. If I consider cost of money as 1% and listing premium as 3%. I will gain only if I get at least 1/3rd allotment.

Regardng Muthoot Finance, I have not thought what to do. If i get my money for Shriram City before this issue then I will apply for the same.
 

San Yad

Active member
#6
Most likely I will not apply for Manappurum NCD. The reason being it is short term.
In this case you will get your capital soon and you can use somewhere after 2 years. Interest rate is also attractive. Why need to wait for 5 years? I am only concern about their fundamental. That what I asked whether one should apply or not.:D

If I consider cost of money as 1% and listing premium as 3%. I will gain only if I get at least 1/3rd allotment.
So you only think of listing gain and want to sell on listing day if suppose you have money? why not long term?

Regarding Muthoot Finance, I have not thought what to do. If i get my money for Shriram City before this issue then I will apply for the same.
So in your opinion Muthoot finance NCD is more secure or you apply because they offer for 5 years?

Happy Investing!
 
#7
In this case you will get your capital soon and you can use somewhere after 2 years. Interest rate is also attractive. Why need to wait for 5 years? I am only concern about their fundamental. That what I asked whether one should apply or not.:D



So you only think of listing gain and want to sell on listing day if suppose you have money? why not long term?



So in your opinion Muthoot finance NCD is more secure or you apply because they offer for 5 years?

Happy Investing!
I can easily get more than 11% interest in other Shriram Transport NCD. For example if you opt for SRTRANSFINNC, you can get it for approx Rs 1000. The interest rate is 10.5% but you will get interest from 1st April. My assumption is if I am getting 11%, there is no gain. Anything above 11% is gain for me.

In case of Mannapuram finance, I will get 1.2% extra than minimum 11%. So it is 2.4% extra in 2 years.

I dont have any money in my saving account. In case I want to apply for Rs 3 lakh, my cost of arranging that money will be 3000. I may get allotment only for Rs 1 lakh. My gain is Rs 2400 whereas my cost is Rs 3000.

I dont have any idea which one is more secure. I think rating for both these are similar.

In case of Muthoot Finance, If am gaining 1.2% extra per year for 5 years, I will gain around 6%. Morever, Interest rates are likely to go down. So the benefit in long term NCDs is more than short term.
 
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Alchemist

Administrator
Staff member
#8
I won't be applying for Manappuram NCDs.

No cash left. :D.

Those who want to apply, should apply today. Those who apply after today, may or may not get any NCDs.

These gold loan companies have limited financial history.

(The companies as well as the business model is new).

Thus, I feel large amounts shouldn't be invested in these companies.

e.g. Manappuram Finance's revenues for FY 2007 were only Rs 43.65 crore.

Both Manappuram Finance and Muthoot Finance have the same credit rating.

I just skimmed through offer documents of both and it seems Manappuram Finance is better capitalized.

Any way, both offers are for different tenures and one can invest small amounts in both of these NCD issues.

Details of the Manappuram Finance NCD Issue:

 

San Yad

Active member
#11
I received only Rs 90 from Manappuram in my bank a/c by ECS. I did not understand, is this the refund of my 50k that I invested or just only interest of refund?

If that is the case then I haven't received refund yet. Anyone received?

I think it would be more clear after checking the application status.

Any link to check online status?

Happy Investing!
 

Alchemist

Administrator
Staff member
#12
I received only Rs 90 from Manappuram in my bank a/c by ECS. I did not understand, is this the refund of my 50k that I invested or just only interest of refund?
Most probably, you got 100% allotment and this is just the interest on application money.

From the RHP of Manappuram Finance NCD Issue:

Application Interest

Interest on Application money on the amount allotted, subject to deduction of income tax under the provisions of the Income tax act, 1961, will be paid separately by the Company @ 7% p.a. for all categories of Applicants for all Series of Bonds, to Allottees and the same should not be deducted from the amount on application. The interest shall be payable from the Pay-In Date, and shall be payable until one day prior to the Deemed Date of Allotment.
 

San Yad

Active member
#17
Only the third NCD (retail with 2 year maturity) is being traded.

That is at a 3% discount.

BSE Plus
Got full allotment. :(.

Too bad. Anyway have to hold for 2 years as it's for long term.

If we buy from market now then it also would be the same interest rate and same maturity date as got on offer?

Happy Investing!
 
#18
Why this went on discount? 12% + interest rate. Does market expects the interest to go up more than 12%+ in the next 2 years?
I guess many people apply for listing gains. Once the price goes down, the sentiments become negative and people start selling their NCDs.

I think there is no need to panic. In fact, if you have more money consider this as an opportunity to buy more.

I don't have any money left otherwise I would have bought it from market.
 
#20
I guess many people apply for listing gains. Once the price goes down, the sentiments become negative and people start selling their NCDs.

I think there is no need to panic. In fact, if you have more money consider this as an opportunity to buy more.

I don't have any money left otherwise I would have bought it from market.
I didn't invest in it. But was curious to know why debt products like this goes down. as you pointed out I think nothing other than selling spree is the answer.
 
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