Muthoot Fincorp NCD will open for subscription from 02 January 2023. the company aims for a base issue size of ₹200 Crores.
Muthoot Fincorp Limited
The company is a non-deposit-taking, systemically important NBFC that has emerged as a prominent gold loan player. From FY 2016 to FY 2022, Muthoot Fincorp had shown a significant increase in its Gold Loan Portfolio at a compound annual growth rate of around 15%.
The personal and business loans secured by gold jewelry and ornaments offered by the company are structured to serve the business and personal purposes of individuals who do not have ready or timely access to formal credit or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
The Gold loan portfolio of the company as of 30 September 2022 comprised approximately 33.23 lakhs loan accounts. As of 30 September 2022, the company operated out of 3,629 branches located across 25 states, including the union territory of Andaman and Nicobar Islands and the national capital territory of Delhi, and employed 16,264 employees including 148 contracted experts in its operations.
Some of the Gold Loan products offered by the company are:
- Muthoot Blue Guide Gold loan
- Muthoot Blue Bright Gold loan
- Muthoot Blue Power Gold loan
- Muthoot Blue Bigg Gold loan
- Muthoot Blue Smart Gold loan
- 24×7 Express Gold loan
In addition to the Gold loan business, the Company provides foreign exchange conversion and money transfer services as sub-agents of various registered money transfer agencies. Muthoot Fincorp is also engaged in the following business:
- Generation and sale of wind energy through its wind farms located in Tamil Nadu; and
- Real estate business through joint venture developers of the company-owned land parcels.
Major Competitive strengths
- Strong and experienced management team.
- Wide product portfolio.
- Pan-Indian presence.
- Trust and customer bond.
Objectives of the Issue
- For the purpose of Working Capital– 75% of the amount raised and allotted in the Issue.
- For General Corporate Purposes– 25% of the amount raised and allotted in the Issue.
Muthoot Fincorp NCD December 2022 Detail
| Issue Open | Jan 2, 2023 – Jan 27, 2023 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 200.00 Crores |
| Issue Size (Shelf) | Rs 200.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL AA-/Stable by CRISIL Ratings Limited |
| Tenor | 27, 38, 48 and 60 Months |
| Series | Series I to VIII |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 27 months | Cumulative | NA | 8.41% | INR 1,199 |
| Series 2 | 27 months | Monthly | 8.10% | 8.40% | INR 1,000 |
| Series 3 | 38 months | Cumulative | NA | 8.57% | INR 1,297 |
| Series 4 | 38 months | Monthly | 8.25% | 8.56% | INR 1,000 |
| Series 5 | 48 months | Annual | 8.70% | 8.69% | INR 1,000 |
| Series 6 | 48 months | Monthly | 8.40% | 8.72% | INR 1,000 |
| Series 7 | 60 months | Annual | 8.80% | 8.79% | INR 1,000 |
| Series 8 | 60 months | Monthly | 8.50% | 8.83% | INR 1,000 |
NCD Rating
The company has received a rating of CRISIL AA-/Stable by CRISIL Ratings Limited for the NCDs proposed to be issued pursuant to this Issue.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 21241.81 | 3765.99 | 257.93 | 2653.03 |
| 31-Mar-21 | 26284.54 | 4101.19 | 397.28 | 3034.7 |
| 31-Mar-22 | 28422.34 | 4355.13 | 412.55 | 3731.16 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 100,000 |
| Non-Institutional | 700,000 |
| Retail | 1,200,000 |
| Category 4 | 0 |
| Total NCD’s | 2,000,000 |
Company Promoters
- Mr. Thomas John Muthoot
- Mr. Thomas George Muthoot
- Mr. Thomas Muthoot
Lead Manager(s)
- SMC Capitals Limited
Muthoot Fincorp NCD Registrar
INTEGRATED REGISTRY MANAGEMENT SERVICES PRIVATE LIMITED
II Floor, Kences Towers, No. 1 Ramakrishna Street
North Usman Road, T. Nagar
Chennai 600 017, Tamil Nadu
Phone: +91 44 28140801,802,803
Email: mfinipo@integratedindia.in
Website: www.integratedindia.in
Company Contact Information
Muthoot Fincorp Limited
Muthoot Centre,
TC No 14/2074-7 Punnen Road,
Trivandrum – 695 039, Kerala
Phone: +91 471 491 1550
Email: cs@muthootfincorp.com
Website: https://www.muthootfincorp.com/
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Muthoot Fincorp NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
