Manappuram NCD lists at a discount

Manappuram NCD listed yesterday, and the 2 year series went as low as Rs. 950 before closing at Rs. 973.

This is the second NCD that has listed at a discount (after India Infoline Investment Services Ltd.), and that too despite the fact that it had a good coupon rate of 12.20%.

Both these NCDs now have at least one series that trades at a yield of over 13.5%, and that’s better than the yield that’s going to be offered by Religare Finvest NCD which is the next one in line.

This is certainly quite an attractive yield, and in the case of IIIFL you can lock it for 5 years whereas in the case of Manappuram the tenure is 2 years.

The market movements show that you could potentially get these NCDs at an even cheaper price and that makes the yield even more attractive.

Here is a list of the series of Manappuram and IIIFL NCDs along with their price and YTMs. YTM data is approximate and I’ve calculated it from MoneyChimp. I’m trying to get a better source to get the YTM numbers where I can enter the exact time remaining and get an answer.


Name Coupon Scrip Code / ISIN Scrip Id Price Yield to Maturity


Zero Coupon

400 days

934826 MFLNCD1 1,000 12.00%


12.00% Semi Annual

24 months

934827 MFLNCD2


12.20% Semi Annual

24 months

934828 MFLNCD3 973.99 13.84%
India Infoline Investment Services Limited 11.70%

36 months

INE866I07206 IIISL N1 980 12.54%
India Infoline Investment Services Limited 11.70%

40 months

INE866I07214 IIISL N2 980 12.54%
India Infoline Investment Services Limited 11.70%

60 months

INE866I07222 IIISL N3 960 12.83%
India Infoline Investment Services Limited 11.90%

60 months

INE866I07230 IIISL N4 937 13.72%

This space is definitely getting interesting, and while the risk of investing in smaller NBFCs is higher than investing in banks it’s hard to ignore these yields either.

Manappuram promoters have taken a loan against pledged shares which is a big red flag for me, and IIISL have large sums loaned out against shares which are volatile and that makes me stay away from that as well. So, there are reasons why SBI NCDs, or even STFC NCDs trade at a premium and these trade at a discount, and I would like to wait and watch to see if Religare NCD lists at a premium or discount.

When something appears a bit too good – I’m always concerned if the market knows something that I don’t and right now this falls under that category.

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