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 Open | January 12, 2024 – January 25, 2024 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, 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 Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL AA- /Stable by CRISIL Ratings Limited |
| Tenor | 24, 36, 60 and 96 Months |
| Series | Series I to X |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Vardhman Trusteeship Private Limited |
Muthoot Fincorp NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Monthly | 8.90% | 9.26% | ₹ 1,000 |
| Series 2 | 36 months | Monthly | 9.15% | 9.53% | ₹ 1,000 |
| Series 3 | 60 months | Monthly | 9.35% | 9.75% | ₹ 1,000 |
| Series 4 | 24 months | Annual | 9.25% | 9.25% | ₹ 1,000 |
| Series 5 | 36 months | Annual | 9.50% | 9.50% | ₹ 1,000 |
| Series 6 | 60 months | Annual | 9.75% | 9.75% | ₹ 1,000 |
| Series 7 | 24 months | Cumulative | NA | 9.25% | ₹ 1,194.0 |
| Series 8 | 36 months | Cumulative | NA | 9.50% | ₹ 1,313.0 |
| Series 9 | 60 months | Cumulative | NA | 9.75% | ₹ 1,592.0 |
| Series 10 | 96 months | Cumulative | NA | 9.05% | ₹ 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 Ended | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 32,134.61 | 28,422.47 |
| Revenue | 5,151.33 | 4,355.13 |
| Profit After Tax | 646.42 | 412.55 |
| Net Worth | 4,257.18 | 3,731.16 |
| Reserves and Surplus | 3,481.27 | 2,958.70 |
Muthoot Fincorp NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 37,500 |
| Non-Institutional | 262,500 |
| Retail | 450,000 |
| Category 4 | 0 |
| Total NCD’s | 750,000 |
Company Promoters
- Thomas John Muthoot
- Thomas George Muthoot
- Thomas Muthoot
Muthoot Fincorp NCD Lead Manager
SMC CAPITALS LIMITED
A-401/402, Lotus Corporate Park,
Off Western Express Highway,
Jai Coach Signal, Goregaon (East),
Mumbai – 400063, Maharashtra
Phone: +91 22 6648 1818
Email: mflncd@smccapitals.com
Website: www.smccapitals.com
Muthoot Fincorp 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 Details
MUTHOOT FINCORP LIMITED
Muthoot Centre, Near Spencer Junction,
M.G. Road, Trivandrum 695 001, Kerala
Phone: +91 471 491 1550
Email: sachu.sivas@muthoot.com
Website: www.muthootfincorp.com
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
