Muthoot Fincorp NCD-All you need to know

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:

  1. Muthoot Blue Guide Gold loan
  2. Muthoot Blue Bright Gold loan
  3. Muthoot Blue Power Gold loan
  4. Muthoot Blue Bigg Gold loan
  5. Muthoot Blue Smart Gold loan
  6. 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:

  1. Generation and sale of wind energy through its wind farms located in Tamil Nadu; and
  2. 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 OpenJan 2, 2023 – Jan 27, 2023
Security NameMuthoot Fincorp Limited
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)Rs 200.00 Crores
Issue Size (Shelf)Rs 200.00 Crores
Issue PriceRs 1000 per NCD
Face ValueRs 1000 each NCD
Minimum Lot size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit RatingCRISIL AA-/Stable by CRISIL Ratings Limited
Tenor27, 38, 48 and 60 Months
SeriesSeries I to VIII
Payment FrequencyMonthly, Annual and Cumulative
Basis of AllotmentFirst Come First Serve Basis

Coupon Rates

OptionTenureInterest PaymentCoupon RateEffective YieldMaturity Amount
Series 127 monthsCumulativeNA8.41%INR 1,199
Series 227 monthsMonthly8.10%8.40%INR 1,000
Series 338 monthsCumulativeNA8.57%INR 1,297
Series 438 monthsMonthly8.25%8.56%INR 1,000
Series 548 monthsAnnual8.70%8.69%INR 1,000
Series 648 monthsMonthly8.40%8.72%INR 1,000
Series 760 monthsAnnual8.80%8.79%INR 1,000
Series 860 monthsMonthly8.50%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 EndedTotal AssetsTotal RevenueProfit After TaxNet Worth
(Amount in ₹ Crore)

NCD Allocation Ratio

Category NCD’s Allocated
Category 40%

NCD’s Offered by Category

Category NCD’s Reserved
Category 40
Total NCD’s2,000,000

Company Promoters

  • Mr. Thomas John Muthoot
  • Mr. Thomas George Muthoot
  • Mr. Thomas Muthoot

Lead Manager(s)

  • SMC Capitals Limited

Muthoot Fincorp NCD Registrar

II Floor, Kences Towers, No. 1 Ramakrishna Street
North Usman Road, T. Nagar
Chennai 600 017, Tamil Nadu
Phone: +91 44 28140801,802,803

Company Contact Information

Muthoot Fincorp Limited
Muthoot Centre,
TC No 14/2074-7 Punnen Road,
Trivandrum – 695 039, Kerala
Phone: +91 471 491 1550

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