Muthoot Fincorp NCD-Sep Tranche I 2023

Muthoot Fincorp NCD opens for subscription from 01 September 2023. The company aims for a base issue size of ₹400 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 31 March 2023 comprised approximately 31.40 lakhs of loan accounts. As of 31 March 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 18,509 employees including 138 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 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 Details

Issue OpenSeptember 1, 2023 – September 14, 2023
Security NameMuthoot Fincorp Limited
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)₹ 400.00 Crores
Issue Size (Shelf)₹ 1,100.00 Crores
Issue Price₹ 1000 per NCD
Face Value₹ 1000 each NCD
Minimum Lot size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit RatingCRISIL AA-/Stable
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

Options and Coupon Rates

OptionTenureInterest PaymentCoupon RateEffective YieldMaturity Amount
Series 124 monthsMonthly8.65%8.99%₹ 1,000
Series 236 monthsMonthly8.90%9.26%₹ 1,000
Series 360 monthsMonthly9.05%9.43%₹ 1,000
Series 424 monthsAnnual9.00%8.99%₹ 1,000
Series 536 monthsAnnual9.27%9.26%₹ 1,000
Series 660 monthsAnnual9.44%9.43%₹ 1,000
Series 724 monthsCumulativeNA8.99%₹ 1,188.0
Series 836 monthsCumulativeNA9.26%₹ 1,305.0
Series 960 monthsCumulativeNA9.43%₹ 1,570.0
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.

Company Financials

Period Ended31 Mar 202131 Mar 202231 Mar 2023
Profit After Tax397.28412.55646.42
Net Worth3,034.703,731.164,257.18
(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’s1,000,000

Company Promoters

  • Thomas John Muthoot
  • Thomas George Muthoot
  • Thomas Muthoot

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

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 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 inMuthoot Fincorp NCD is purely your personal choice. make a good study and analysis before you make the investment.

Happy Investing

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