Started in 2010, Manappuram Home Finance Ltd is a non-deposit taking Housing Finance Company authorised by the National Housing Bank. Company is focused on providing affordable housing finance for the EWS, LIG and MIG segment primarily in Tier II and Tier III cities and towns in India. Company offers two products namely Home Loan and Loan Against Property ('LAP'). Company provides secured finance primarily to individual customers with focus on self-employed (professionals & nonprofessionals) and salaried (informal segment) for purchase, self-construction, improvement and extension of homes, new and resalable flats, balance transfer of existing loans, commercial properties (purchase / LAP) and composite loan (land and construction). The customer base consists of 6,184 customers (number of customers are considered based on number of loan accounts) and the total assets under management ('AUM') was Rs 51,875.81 lakhs, based on INDAS, as on March 31, 2019. As on March 31, 2019, the average ticket size of a Home Loan was Rs 10.15 lakhs and for the LAP was Rs 7.22 lakhs with an average tenure of loans being, approximately 16 years and 11 years, respectively. As on August 20, 2019, the Company has 46 branches located across eight states namely Maharashtra, Gujarat, Tamil Nadu, Kerala, Karnataka, Rajasthan, Madhya Pradesh and Andhra Pradesh. Company's gross non-performing assets as a percentage of the AUM as at March 31, 2019 based on IND AS stood at 3.85% and the gross NPA as a percentage of the AUM as at March 31, 2018 and March 31, 2017, based on Indian GAAP, stood at 4.77% and 1.49% respectively. The net non-performing assets as a percentage of the AUM as at March 31,2019 based on IND AS stood at 3.05% and the net non-performing assets as a percentage of the AUM as at March 31, 2018 and March 31, 2017 based on Indian GAAP stood at 3.95% and 1.26% respectively. The company offers coupon rates up to 9.75% - 10.65% depending on the tenures - 36 months, 60 months and 2500 days. The mode of interest payments which is either Monthly, Annually or cumulative as per the choice of investors. The NCD issue is graded 'CARE AA- / Stable' by CARE Ratings Limited for an amount of up to Rs 200 Cr by latter dated 16th September 2019. The rating of the NCDs by CARE 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. So we give 'SUBSCRIBE' rating to this NCD.
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