Muthoot Finance NCD opens for subscription from 08 January 2024. The company aims for a base issue size of ₹100 Crores.
About the company
Incorporated in 1997, Muthoot Finance (MFL) is the flagship company of the Kerala-based business house and is the largest gold loan NBFC in India in terms of the loan portfolio. It provides personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to individuals who possess gold jewelry but are not able to access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
Its Gold Loan portfolio as of 30 September 2023 comprised approximately 8.52 million loan accounts in India that it serviced through 4,745 branches across 22 states, the national capital territory of Delhi, and six union territories in India. As of 30 September 2023, it employed 28,097 persons in its operations.
For the years ended 31 March 2021, 2022, and 2023, revenues from the gold loan business constituted 95.88%, 96.67%, and 95.10% respectively of its total income. In addition to the Gold Loans business, the company provides money transfer services through its branches as sub-agents of various registered money transfer agencies and also provides collection agency services.
Objectives of the Issue
- For lending – a minimum of 75% of the amount raised and allotted in the Issue.
- For General Corporate Purposes – shall not exceed 25% of the amount raised and allotted in the Issue
Muthoot Finance NCD Details
| Issue Open | January 8, 2024 – January 19, 2024 |
| Security Name | Muthoot Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 100.00 Crores |
| Issue Size (Shelf) | ₹ 900.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | [ICRA] AA+/Stable by ICRA Limited |
| Tenor | 24, 36, and 60 Months |
| Series | Series I to VII |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Ltd. |
Muthoot Finance NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 36 months | Monthly | 8.25% | 8.75% | ₹ 1,000 |
| Series 2 | 60 months | Monthly | 8.25% | 8.75% | ₹ 1,000 |
| Series 3 | 24 months | Annual | 8.25% | 8.75% | ₹ 1,000 |
| Series 4 | 36 months | Annual | 8.50% | 9.00% | ₹ 1,000 |
| Series 5 | 60 months | Annual | 8.50% | 9.00% | ₹ 1,000 |
| Series 6 | 36 months | Cumulative | NA | 9.00% | ₹ 1,295.03 |
| Series 7 | 60 months | Cumulative | NA | 9.00% | ₹ 1,538.62 |
Muthoot Finance NCD Rating
The NCDs proposed to be issued under this Issue have been rated [ICRA] AA+/Stable (pronounced as ICRA Double A plus rating with stable outlook) by ICRA Limited.
Company Financials
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 72,619.81 | 70,554.69 | 63,464.92 |
| Revenue | 10,543.75 | 11,098.39 | 10,574.36 |
| Profit After Tax | 3,473.53 | 3,954.30 | 3,722.18 |
| Net Worth | 2,106.20 | 18,344.57 | 15,238.89 |
Muthoot Finance NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 50,000 |
| Non-Institutional | 300,000 |
| HNI | 300,000 |
| Retail | 350,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Mr. George Thomas Muthoot
- Mr. George Jacob Muthoot
- Mr. George Alexander Muthoot
Muthoot Finance NCD Lead Manager
A. K. CAPITAL SERVICES LIMITED
603, 6th Floor, Windsor,
Off CST Road, Kalina, Santacruz – (East),
Mumbai – 400 098, India
Phone: +91 22 6754 6500
Email: mfl.ncd2023@akgroup.co.in
Website: www.akgroup.co.in
Muthoot Finance Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: mfl.ncd2023@linkintime.co.in
Website: www.linkintime.co.in
Company Contact Details
Muthoot Finance Limited
2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Banerji Road, Kochi – 682 018
Phone: +91 484 239 4712
Email: ncd@muthootgroup.com
Website: http://www.muthootfinance.com/
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Muthoot Finance NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
