Muthoot Finance Ltd NCD (Muthoot Finance NCD Dec 2020) Detail

Dec 11, 2020 - Jan 5, 2021

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.

Muthoot Finance NCD Dec 2020 Detail

Issue OpenDec 11, 2020 - Jan 5, 2021
Security NameMuthoot Finance Ltd
Security TypeSecured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)Rs 100.00 Crores
Issue Size (Shelf)Rs 900.00 Crores
Issue PriceRs 1000 per NCD
Face ValueRs 1000 each NCD
Minimum Lot size10 NCD
Market Lot1 NCD
Listing AtBSE
Credit Rating"AA (Stable)" by ICRA and "AA/Positive" by CRISIL
Tenor38 months and 60 months
Series
Payment FrequencyMonthly or Annual
Basis of AllotmentFirst Come First Serve Basis

NCD Allocation Ratio

NCD's allocated in each investor category:

Category ?NCD's Allocated
Category 10%
Category 20%
Category 30%
Category 40%

NCD's Offered

NCD's offered in each investor category:

Category ?NCD's Reserved
Category 150,000
Category 250,000
Category 3300,000
Category 4600,000
Total NCD's1,000,000

Coupon Rates

Muthoot Finance NCD Terms of Each Instrument

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

NCD Rating Detail

ICRA has assigned [ICRA]AA rating with a Stable outlook, assigned to the captioned Non-Convertible Debenture Programme of the company. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Within this category rating modifier {"+" (plus) or "-" (minus)} can be used with the rating symbols. The modifier reflects the comparative standing within the category.

CRISIL has assigned its CRISIL AA/Positive rating Proposed Issuance of Long Term Principal Market Linked Debentures of Muthoot Finance Limited. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

Objects of the Issue:

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

Muthoot Finance NCD Dec 2020 Prospectus

Muthoot Finance NCD Dec 2020 Rating

30
3.3
Rating:Rated 3.3 stars

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Muthoot Finance NCD Dec 2020 Reviews

Company Contact Information

Muthoot Finance Ltd
2nd Floor, Muthoot Chambers,
Opp Saritha Theatre Complex,
Banerji Road, Kochi 682 018, India

Phone: +91 484 239 4712
Email: ncd@muthootgroup.com
Website: https://www.muthootfinance.com/

Muthoot Finance NCD Dec 2020 Registrar

Link Intime India Private Ltd
   Link Intime India Private Ltd
   C 101, 247 Park, L.B.S.Marg,
   Vikhroli (West), Mumbai - 400083

Phone: +91-22-4918 6270
Email: mfl.ncd2020@linkintime.co.in
Website: http://www.linkintime.co.in

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2 Comments

Vimal Garodia
2. Vimal Garodia  Dec 11, 2020 12:53
Already 83% subscribed.. looks like people like this NCD..
KARTHIKEYAN SOMASUNDARAM
2.1. KARTHIKEYAN SOMASUNDARAM  Dec 12, 2020 00:34
whether it's stock or NCD or whatever people are investing like anything. OMG
ranviraaj
1. ranviraaj  Dec 8, 2020 22:23
better to buy from secondary market with higher yields for the same company NCDs
Doniv
1.2. Doniv  Dec 10, 2020 22:10
7% available with Banks with better liquidity
KARTHIKEYAN SOMASUNDARAM
1.3. KARTHIKEYAN SOMASUNDARAM  Dec 11, 2020 00:02
At least 9 to 9.5% is the expectation people need to go for NCD.








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