Muthoot Fincorp NCD – January Tranche III 2023

Muthoot Fincorp NCD opens for subscription on 12 January 2024. The company aims for a base issue size of ₹1100 Crores.

About the company

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 showed 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 2023 comprised approximately 31.68 lakh loan accounts. As of 30 September 2023, the company operated out of 3,619 branches located across 24 states, including the union territory of Andaman and Nicobar Islands and the national capital territory of Delhi, and employed 20,507 employees including 91 contracted experts in its operations. The company has been engaged in the Gold loans business for over two decades and is headquartered in Kerala, India.

Objectives of the Issue

  • For Working Capital – 75% of the amount raised and allotted in this Tranche II Issue.
  • For General Corporate Purposes – 25% of the amount raised and allotted in this Tranche II Issue.

Muthoot Fincorp NCD Details

Issue OpenJanuary 12, 2024 – January 25, 2024
Security NameMuthoot Fincorp Limited
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)₹ 75.00 Crores
Issue Size (Shelf)₹ 1,100.00 Crores
Issue Price₹ 1000 per NCD
Face Value₹ 1000 for each NCD
Minimum Lot Size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit RatingCRISIL AA- /Stable by CRISIL Ratings Limited
Tenor24, 36, 60 and 96 Months
SeriesSeries I to X
Payment FrequencyMonthly, Annual and Cumulative
Basis of AllotmentFirst Come First Serve Basis
Debenture Trustee/sVardhman Trusteeship Private Limited

Muthoot Fincorp NCD Options and Coupon Rates

OptionTenureInterest PaymentCoupon RateEffective YieldMaturity Amount
Series 124 monthsMonthly8.90%9.26%₹ 1,000
Series 236 monthsMonthly9.15%9.53%₹ 1,000
Series 360 monthsMonthly9.35%9.75%₹ 1,000
Series 424 monthsAnnual9.25%9.25%₹ 1,000
Series 536 monthsAnnual9.50%9.50%₹ 1,000
Series 660 monthsAnnual9.75%9.75%₹ 1,000
Series 724 monthsCumulativeNA9.25%₹ 1,194.0
Series 836 monthsCumulativeNA9.50%₹ 1,313.0
Series 960 monthsCumulativeNA9.75%₹ 1,592.0
Series 1096 monthsCumulativeNA9.05%₹ 2,001.0

Muthoot Fincorp NCD Rating

The company has received a rating of CRISIL AA-/Stable by CRISIL Ratings Limited for the NCDs proposed to be issued under this Issue.

Company Financials

Period Ended31 Mar 202331 Mar 2022
Profit After Tax646.42412.55
Net Worth4,257.183,731.16
Reserves and Surplus3,481.272,958.70
(Amount in ₹ Crore)

Muthoot Fincorp NCD Allocation Ratio

Category NCD’s Allocated
Category 40%

NCD’s Offered by Category

Category NCD’s Reserved
Category 40
Total NCD’s750,000

Company Promoters

  • Thomas John Muthoot
  • Thomas George Muthoot
  • Thomas Muthoot

Muthoot Fincorp NCD Lead Manager

A-401/402, Lotus Corporate Park,
Off Western Express Highway,
Jai Coach Signal, Goregaon (East),
Mumbai – 400063, Maharashtra
Phone: +91 22 6648 1818

Muthoot Fincorp 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 Details

Muthoot Centre, Near Spencer Junction,
M.G. Road, Trivandrum 695 001, Kerala
Phone: +91 471 491 1550

Final Thoughts

Non-convertible debentures (NCDs) 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 decision.

Happy Investing

Leave a Comment

Your email address will not be published. Required fields are marked *