Muthoot Fincorp NCD opens for subscription on 11 October 2024. The company aims for a base issue size of ₹75 Crores.
About the company
Incorporated in 1997, Muthoot Fincorp Limited is a non-deposit-taking NBFC. The company primarily offers personal and business loans secured by gold ornaments and jewelry. The gold loan product is available for personal and business purposes to meet individuals’ short-term liquidity requirements. The company’s gold loan portfolio comprised around 31.83 lakhs and 30.46 lakhs of loan accounts as of June 30, 2024, and March 31, 2024, respectively.
As on June 30, 2024, the Company had 3,694 branches across 24 states, including the Union Territory of Andaman and Nicobar Islands and the National Capital Territory of Delhi, and employed 23,000 people, including 97 contracted experts, in its operations. Apart from gold loans, the company also offers foreign exchange and money transfer services as a sub-agent of various registered money transfer agents. Muthoot Fincorp also operates in the following business segments: Generation and sale of wind energy through its wind farms in Tamil Nadu; and real estate business through joint venture developers of the company’s own properties.
Objectives of the Issue
- This is for the purpose of on-lending, financing, and repayment/prepayment of interest and principal amounts of the Company’s existing loan liabilities.
- General corporate purposes.
Muthoot Fincorp NCD Details
| Issue Open | October 11, 2024 – October 24, 2024 |
| Security Name | Muthoot Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 75.00 Crores |
| Issue Size (Oversubscription) | ₹ 175.00 Crores |
| Tranche Issue Size | ₹ 250.00 Crores |
| Issue Size (Shelf) | ₹ 2,000.00 Crores |
| Tranche Number | 2 |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 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 | 24, 36, 60, 72, and 92 Months |
| Series | Series I to XIII |
| 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
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | Series 12 | Series 13 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Annual | Annual | Annual | Annual | Cumulative | Cumulative | Cumulative | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 36 Months | 60 Months | 72 Months | 24 Months | 36 Months | 60 Months | 72 Months | 24 Months | 36 Months | 60 Months | 72 Months | 92 Months |
| Coupon (% per Annum) | 9% | 9.25% | 9.45% | 9.65% | 9.4% | 9.65% | 9.9% | 10.1% | NA | NA | NA | NA | NA |
| Effective Yield (% per Annum) | 9.38% | 9.65% | 9.87% | 10.09% | 9.4% | 9.65% | 9.89% | 10.1% | 9.4% | 9.65% | 9.9% | 10.1% | 9.5% |
| Amount on Maturity (In Rs.) | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,000 | ₹1,196.84 | ₹1,318.34 | ₹1,603.62 | ₹1,781.72 | ₹2,006 |
Muthoot Fincorp NCD Rating
CRISIL AA-/Stable (pronounced as CRISIL double A minus rating with stable outlook) for an amount of Rs. 1,90,000 lakhs of NCDs by CRISIL Ratings Limited vide letter dated June 29. June 2024, and CRISIL AA-/Stable (pronounced as CRISIL double A minus rating with stable outlook) for an amount of Rs. 1,10,000 lakhs of NCDs (of which Rs. 10,900 lakhs are unutilized) by CRISIL Ratings Limited
Company Financials
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 38,704.14 | 32,134.61 | 28,422.47 |
| Revenue | 6,584.52 | 5,151.33 | 4,355.13 |
| Profit After Tax | 1,047.98 | 646.42 | 412.55 |
| Reserves and Surplus | 4,071.02 | 3,481.27 | 2,958.7 |
Muthoot Fincorp NCD Allocation Ratio
Company Promoters
- Thomas John Muthoot
- Thomas George Muthoot
- Thomas Muthoot
Muthoot Fincorp NCD Prospectus
NCD Lead Manager
Nuvama Wealth Management Limited
8th Floor, Wing A, Building No 3, Inspire BKC,
G Block, Bandra-Kurla Complex,
Bandra East,
Website: https://www.nuvama.com/
Email: Pfc.ncd@nuvama.com
Phone: +91 22 4009 4400
Muthoot Fincorp Registrar
Integrated Registry Management Services Private Limited
2nd Floor, Kences Towers,
No.1 Ramakrishna street, North Usman Road,TNagar, Chennai – 600017
Phone: 044 – 28140801 to 28140803
Email: yuvraj@integratedindia.in
Website: https://www.integratedregistry.in/registrarstosta.aspx?od=1
Company Contact Information
Muthoot Fincorp Limited
Muthoot Centre,
TC No 27/3022 Punnen Road,
Trivandrum – 695 001
Phone: +91 471 491 1550
Email: cs@muthoot.com
Website: http://www.muthootfincorp.com/
Muthoot Fincorp NCD Allotment Status
Muthoot Fincorp NCD allotment status will be available on Integrated Registry Management Services website. Click on this link to get allotment status.
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those seeking a diversified portfolio. Investing in Muthoot Fincorp NCD is purely your personal choice. Do a thorough study and analysis before you make the investment decision.
Happy Investing
