A recent press report said that Manapuram Finance Limited expects a growth of 50-60% in gold loan sector during this fiscal.
Mr.I.Unnikrishnan said that the bank has no plans to raise the equity capital this fiscal. The company has a paid-up capital of Rs.160 crore. He also said that MFL expects a disbursement to grow by 50-60 per cent this financial year to about Rs.30, 000 crore. In the fiscal 2010-2011 manapuram had disbursed Rs.18, 000 crore. The company is positioning gold loans as convenience, rather than distress, loans.
Manapuram finance aims to mobilise Rs.400 crore through the NCD issue with an option to retain oversubscription up to Rs.350 crore, taking the aggregate issue to Rs.750 crore.
The report also mentioned that Manapuram has a gold holding of 62 tonnes, gold loan portfolio of about Rs.9, 000 crore, accounting for about 13 per cent of the market share of the total gold loans of Rs. 70,000 crore provided by banks, financial institutions and NBFCs. Further, 86 per cent of MFL’s loan portfolio is in South India and about 70 per cent of its branches are in South India. Same report said that 30 per cent of company’s equity is held by foreign institutional investors and private equity investors.