Muthoot Mercantile NCD opens for subscription on 06 May 2024. The company aims for a base issue size of ₹50 Crores.
About the company
Muthoot Mercantile is a non-banking financial company engaged in the business of lending loans against the security of Gold, Investments, Health Insurance, Forex Services, and Money Transfer. The company has been in the money lending business for decades, mainly focused on small-scale lending against households and used gold jewelry. Over 84 years, the company has evolved its operations.
As of 31 August 2023, Muthoot Mercantile disbursed Gold Loan and Pronote Loan to the customers from a network of 224 branches of the company in 8 states and union territories of India namely Tamil Nadu, Kerala, Haryana, Maharashtra, Madhya Pradesh, Odisha, Punjab, Uttar Pradesh and Delhi. As of 31 August 2023, it employed 722 persons in the operations.
The Gold Loan portfolio as of 31 August 2023 comprised approximately 0.72 lakh customers aggregating a principal amount of INR 549.63 crores in Gold Loan, which accounted for 96.48% of its total loans. The Gold Loan portfolio as of 31 August 2023, FY2023, 2022, and 2021 had outstanding principal amounting to INR 549.63 crores, INR 494.70 crores, INR 332.56 crores, and INR 284.69 crores respectively, and has grown at a CAGR of 31.29% from FY 2021 to 31 August 2023.
Objectives of the Issue
- For onward lending, financing and repayment/prepayment of principal and interest on existing
- borrowings.
- 2. General Corporate Purposes
Muthoot Mercantile NCD Details
| Issue Open | May 6, 2024 – May 17, 2024 |
| Security Name | Muthoot Mercantile Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 50.00 Crores |
| Issue Size (Oversubscription) | ₹ 50.00 Crores |
| Overall Issue Size | ₹ 100.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | IND BBB/Stable by by India Ratings & Research Private Limited |
| Tenor | 367days, 18, 24, 36, 60, 75 months |
| Series | Series I to XI |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
Muthoot Mercantile NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 367 days | Monthly | 10.50% | 11.02% | ₹ 1,000 |
| Series 2 | 367 days | Cumulative | NA | 10.60% | ₹ 1,106.00 |
| Series 3 | 18 months | Monthly | 10.50% | 11.02% | ₹ 1,000 |
| Series 4 | 18 months | Cumulative | NA | 10.34% | ₹ 1,159.04 |
| Series 5 | 24 months | Monthly | 10.60% | 11.13% | ₹ 1,000 |
| Series 6 | 24 months | Cumulative | NA | 10.45% | ₹ 1,219.92 |
| Series 7 | 36 months | Monthly | 10.75% | 11.30% | ₹ 1,000 |
| Series 8 | 36 months | Cumulative | NA | 10.66% | ₹ 1,355.10 |
| Series 9 | 60 months | Monthly | 10.80% | 11.35% | ₹ 1,000 |
| Series 10 | 60 months | Cumulative | NA | 10.63% | ₹ 1,657.16 |
| Series 11 | 75 months | Cumulative | NA | 11.73% | ₹ 2,000 |
Muthoot Mercantile NCD Rating
The NCDs proposed to be issued under this Issue have been rated “IND BBB/Stable”, by India Ratings & Research Private Limited
Company Financials
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 818.04 | 606.51 | 420.36 | 316.24 |
| Revenue | 35.91 | 94.67 | 67.02 | 49.39 |
| Profit After Tax | 8.73 | 18.19 | 17.02 | 14.02 |
| Net Worth | 148.74 | 135.56 | 117.37 | 100.35 |
Muthoot Mercantile NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 50,000 |
| Non-Institutional | 200,000 |
| Retail | 250,000 |
| Category 4 | 0 |
| Total NCD’s | 500,000 |
Company Promoters
- Mathew Mathaininan
- Richi Mathew
NCD Lead Manager
VIVRO FINANCIAL SERVICES PRIVATE LIMITED
607/608 Marathon Icon, Opp. Peninsula
Corporate Park Off. Ganpatrao Kadam Marg,
Veer Santaji Lane, Lower Parel,
Mumbai-400 013, Maharashtra, India
Phone: +91 22 6666 8040/41/42
Email: investors@vivro.net
Website: www.vivro.net
NCD Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B, Plot No – 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad Rangareddi,
500 032, Telangana, India
Phone: +91 40 6716 2222
Email: mml.ncdipo@kfintech.com
Website: www.kfintech.com
Company Contact Details
MUTHOOT MERCANTILE LIMITED
1st Floor, North Block, Muthoot Floors,
Opposite W&C Hospital, Thycaud,
Thiruvananthapuram 695 014, Kerala
Phone: +91-471-277-4800
Email: cs@muthootenterprises.com
Website: www.muthootenterprises.com
Muthoot Mercantile NCD Subscription Status (no. of times)
| Date | QIB | NII | Retail | Total |
|---|---|---|---|---|
| 17 May 2024 | 0.00 | 1.03 | 1.63 | 1.23 |
| 16 May 2024 | 0.00 | 0.98 | 1.56 | 1.17 |
| 15 May 2024 | 0.00 | 0.92 | 1.46 | 1.09 |
| 14 May 2024 | 0.00 | 0.85 | 1.32 | 1.00 |
| 13 May 2024 | 0.00 | 0.81 | 1.24 | 0.94 |
| 10 May 2024 | 0.00 | 0.78 | 1.10 | 0.86 |
| 9 May 2024 | 0.00 | 0.74 | 1.02 | 0.81 |
| 8 May 2024 | 0.00 | 0.70 | 0.89 | 0.73 |
| 7 May 2024 | 0.00 | 0.67 | 0.79 | 0.66 |
| 6 May 2024 | 0.00 | 0.56 | 0.58 | 0.51 |
Allotment Status
Muthoot Mercantile NCD May 2024 allotment status will be updated on the website of KFin Technologies’ website. Click on this link to get the allotment status.
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those seeking a diversified portfolio. investing in Muthoot Mercantile NCD is purely your personal choice. make a good study and analysis before you make the investment decision.
Happy Investing
