[.]| Listing at BSE | Fri, Dec 11, 2020 - Tue, Jan 5, 2021
Muthoot Finance Ltd. NCD issue is a public issue of secured, redeemable, non-convertible debenture , issued under a Shelf Prospectus of ₹900.00 Cr with a base issue size of ₹100.00 Cr and an option to retain oversubscription up to ₹[.] Cr, aggregating to a tranch issue size of ₹[.] Cr. The NCDs are offered at a face value ₹1000 each and an issue price of ₹1000 per NCD.
Muthoot Finance Ltd. NCD issue opens on Dec 11, 2020 and closes on Jan 5, 2021. NCD are proposed to be listed on BSE.
The minimum lot size is 10 NCDs, requiring a minimum investment of ₹ 10,000 , while the market lot for trading is 1 NCD.
The issue offers interest rates ranging from per annum to per annum, depending on the series and tenure selected.
The NCD has been rated: .
A.K.Capital Services Ltd. is the Lead Manager to the issue, is the Debenture Trustee, and MUFG Intime India Pvt.Ltd. is the Registrar to the Issue.
Investors are advised to refer to the [.] for detailed information on risk factors, financials, and the terms of the issue.
Open Date
Fri, Dec 11, 2020
Close Date
Tue, Jan 5, 2021
Issue Size (Overall)
[.]
| Option/Series | I | II | III | IV | V | VI |
| Tenor | 38 months | 60 Months | 38 months | 60 Months | 38 months | 60 Months |
| Interest Frequency | Monthly | Monthly | Annual | Annual | NA | NA |
| Coupon Rate (% p.a.) Cat I, II, III, IV | 6.75% | 7.10% | 7.00% | 7.35% | NA | NA |
| Effective Yield (% p.a.) Cat I, II | 6.75% | 7.10% | 7.00% | 7.35% | 7.00% | 7.35% |
| Effective Yield (% p.a.) Cat III, IV | 7.15% | 7.50% | 7.40% | 7.75% | 7.40% | 7.75% |
| Amount(Rs /NCD) on Maturity - Cat I, II | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,239.34 | Rs 1,425.64 |
| Amount(Rs /NCD) on Maturity - Cat III, IV | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,254.11 | Rs 1,452.40 |
Incorporated in 1997, Muthoot Finance Ltd offers business loans secured by gold jewelry (gold loans) to meet unanticipated or other short-term liquidity requirements. Muthoot Finance India's largest gold financing company in terms of the loan portfolio.
The company primarily caters to individuals who possess gold jewelry but cannot access formal credit within a reasonable time, or for whom credit may not be available at all. The company served over 70 crore customers till Oct 2020 (including repeat customers) and serving over 2.5 Lakh customers daily.
Muthoot Finance Limited (MFL) is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, real estate, education, hospitality, power generation and entertainment. MFL was incorporated in 1997 and is India's largest gold loan focussed NBFC with total loan assets (standalone) of Rs. 41,296 crore and 4,573 branches as on June 30, 2020. The company derives a major proportion of its business from South India (48% of the total portfolio as on June 30, 2020), where gold loans have traditionally been accepted as a means of availing short-term credit, although MFL has increased its presence beyond South India over the past few years.
MFL achieved a standalone net profit of Rs. 3,018 crore on an asset base of Rs. 50,460 crore in FY2020 against a net profit of Rs. 1,972 crore on an asset base of Rs. 38,069 crore in FY2019. In Q1FY21, the company witnessed standalone net profit of Rs. 841 crore.
The consolidated portfolio stood at Rs. 46,501 crore as on June 30, 2020 compared to Rs. 46,871 crore as on March 31, 2020 (Rs. 40,228 crore as on March 31, 2019), of which gold, housing and microfinance accounted for 87%, 4% and 6%, respectively.
The Net Proceeds raised through the Tranche II Issue will be utilised for following activities in the ratio provided as below:
1. For the purpose of lending: minimum of 75% of the amount raised and allotted in the Issue
2. For General Corporate Purposes: shall not exceed 25% of the amount raised and allotted in the Issue
[Dilip Davda] Considering its financial performance, credit ratings, investors looking for steady long term income may consider investment in this offer with reasonable coupon rates in the falling interest rates scenario. (Subscribe). Read detail review...
Muthoot Finance Ltd.
2nd Floor, Muthoot Chambers,
Opp Saritha Theatre Complex,
Banerji Road, Kochi 682 018, India
Baner, Maharashtra, 682018
NSE and BSE offer NSEgoBid and BSEDirect apps/websites through which retail investors can apply for NCDs up to Rs 5 lakhs. Not all brokers and banks provide the facility to apply for NCD online.
To apply for an NCD online, the investor should fill in the NCD bid details online and provide the details of the DP and bank accounts (ASBA/UPI) as requested. In the case of a UPI application, the investor needs to approve the UPI mandate to complete the application process.
Steps to invest in NCD IPO through GoldenPi
Retail investors can apply for an IPO online if the investment amount is less than or up to 10 lakhs.
Steps to apply for NCD IPO with Indiabonds:
You can buy or invest in NCD IPOs through the following intermediaries:
The investor can apply for the NCD IPO online through NCD intermediaries such as a registered stockbroker, provided the broker offers an online application for the NCD IPO. Not many brokers allow you to invest in an NCD IPO online. Currently, very few brokers, such as Nuvama Wealth, Angel One, and SBI Securities, offer the facility to apply for NCD IPOs electronically. You should check with your broker or intermediary to see if the online application facility for the NCD IPO is available through them.
Refer to the detailed guidelines on NSEgoBID and BSEDirect for information on the registration process and how to apply for NCDs through the exchange.
Important links :
Read more about NCD Application Process.
The minimum amount required for NCD investment is Rs. 10,000.
Generally, the minimum lot size of NCD is 10, and the face value is 1,000.
NCD allotment can be checked on the BSE website or with the Registrar once the allotment has been made.
Steps to check the NCD allotment status at the BSE:
Alternatively, the applicant can also check the allotment status on the respective website of the Registrar for the issue. The applicant will need their PAN details or the applicant's Aadhaar number to check the status.
Generally, all applicants receive full allotment due to the retention of the oversubscription option.
Read more information on NCD Subscription and NCD Allotment Process.
No, you cannot withdraw or redeem Muthoot Finance Ltd. NCDs before maturity directly from the company. However, there are a couple of options available if you want to exit early:
If the NCDs are listed on stock exchanges (like BSE/NSE), you can:
Only possible if a "call option" exists.
Read more about NCD Subscription and Allotment Process
Bid Cancellation and Withdrawal Policy for NCD Applicants
Note:
The specific process and conditions for post-closure cancellation vary by issuer. Applicants should refer to the Offer Document for issuer-specific guidelines.
