Welcome to manappuram.com! In order to provide a more relevant experience for you, we use cookies to enable some website functionality. Cookies help us see which articles most interest you; allow you to permit us to deliver content tailored to your interests and locations; and provide many other site benefits. For more information, please review ourPrivacy Policy


CRISIL assigns stable rating for Manappuram Home Finance

Wednesday, October 26, 2016
Business Standard.
Leading credit rating agency CRISIL has assigned its "A+/stable" credit rating to the long term bank loan facility of Manappuram Home Finance Private Ltd (MHF).

The rating reflects managerial and financial support received from the parent Manappuram Finance Ltd. and adequate capitalization.

According to CRISIL, Manappuram Home Finance is adequately capitalized for the expected scale of business following infusion of capital of Rs. 55 crore in fiscal 2016 taking its total paid up capital to Rs.100 crore.

Additional infusions are expected to support capital adequacy and keep the gearing at around five times over the medium term. These rating strengths are partially offset by a small scale of operations with a limited track record, a modest earnings profile, and exposure to inherent risks relating to the affordable housing finance segment.

The expectation of support from the parent is driven by the strategic importance of the company to the Manappuram group in diversification of its financial product suite.

The business is scalable and is expected to grow materially over the medium term. Manappuram Finance Ltd. holds 100 percent of the equity in Manappuram Home Finance.

The parent has infused growth capital and will infuse additional capital as and when required. Furthermore, its Managing Director, VP Nandakumar, along with another director, is represented on the board of the company.

CRISIL believes Manappuram Home Finance will continue to receive strong financial and managerial support from its parent, while maintaining adequate capitalization, over the medium term.

Link: http://www.business-standard.com/article/news-ani/crisil-assigns-stable-rating-for-manappuram-home-finance-116102600442_1.html