On Friday, Manappuram Finance announced to generate Rs 6,000 crore in the next fiscal FY22.
The decision taken by its board of directors of the company mentioned the raise in the filing with the government.
The meeting discussed raising the amount of Rs 6,000 Crore through the issuance of redeemable non-convertible debentures.
The fundraising process will take place by public issue and redeemable non-convertible debentures (NCD) on private placement.
Non- convertible debentures are financial instruments that are available to raise long-term funds through the public. These types of debentures are non-convertible into shares. The drawback of this financial instrument is that it is non-convertible. However, investment in such debt instruments will give a high rate of return as a reward.
Those companies which have strong growth performance and credit rating can issue NCD under regulations laid by RBI. Additionally, they offer benefits like high liquidity, less risk, tax exemptions, and more.
On NSE the Manappuram Finance per shares traded at Rs 156.40 today noon.
Manappuram Finance is a non-banking financial company that started its operations in the year 1949.
Also known as MAFIL situated in Valapad and has over 4190+ branches across 25 states.
It was the first Kerala-based entity to achieve a certificate of registration from the central bank of India.
Manappuram Finance is the first NBFC listed company. Since 1995, the company is performing well and paying dividends to its shareholders.
The services provided by the company included gold against the loan, money transfer, foreign exchange, domestic transfer of money, and more.
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