Muthoot Finance NCD – Tranche III January 2024

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 OpenJanuary 8, 2024 – January 19, 2024
Security NameMuthoot Finance Limited
Security TypeSecured, 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 size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit Rating[ICRA] AA+/Stable by ICRA Limited
Tenor24, 36, and 60 Months
SeriesSeries I to VII
Payment FrequencyMonthly and Annually
Basis of AllotmentFirst Come First Serve Basis
Debenture Trustee/sIdbi Trusteeship Services Ltd.

Muthoot Finance NCD Options and Coupon Rates

OptionTenureInterest PaymentCoupon RateEffective YieldMaturity Amount
Series 136 monthsMonthly8.25%8.75%₹ 1,000
Series 260 monthsMonthly8.25%8.75%₹ 1,000
Series 324 monthsAnnual8.25%8.75%₹ 1,000
Series 436 monthsAnnual8.50%9.00%₹ 1,000
Series 560 monthsAnnual8.50%9.00%₹ 1,000
Series 636 monthsCumulativeNA9.00%₹ 1,295.03
Series 760 monthsCumulativeNA9.00%₹ 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 Ended31 Mar 202331 Mar 202231 Mar 2021
Profit After Tax3,473.533,954.303,722.18
Net Worth2,106.2018,344.5715,238.89
(Amount in ₹ Crore)

Muthoot Finance NCD Allocation Ratio

Category NCD’s Allocated

NCD’s Offered by Category

Category NCD’s Reserved
Total NCD’s1,000,000

Company Promoters

  • Mr. George Thomas Muthoot
  • Mr. George Jacob Muthoot
  • Mr. George Alexander Muthoot

Muthoot Finance NCD Lead Manager

603, 6th Floor, Windsor,
Off CST Road, Kalina, Santacruz – (East),
Mumbai – 400 098, India
Phone: +91 22 6754 6500

Muthoot Finance Registrar

C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949

Company Contact Details

Muthoot Finance Limited
2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Banerji Road, Kochi – 682 018

Phone: +91 484 239 4712

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

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