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

Oct 27, 2020 - Oct 29, 2020
Muthoot Finance Ltd Logo

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 Oct 2020 Detail

Issue Open Oct 27, 2020 - Oct 29, 2020
Security Name Muthoot Finance Ltd
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base) Rs 100.00 Crores
Issue Size (Shelf) Rs 1,900.00 Crores
Issue Price Rs 1000 per NCD
Face Value Rs 1000 each NCD
Minimum Lot size 10 NCD
Market Lot 1 NCD
Listing At BSE
Credit Rating "AA (Stable)" by ICRA and "AA/Positive" by CRISIL
Tenor 38 months and 60 months
Series
Payment Frequency Monthly, Annual or Cumulative
Basis of Allotment First Come First Serve Basis

NCD Allocation Ratio

Category ? NCD's Allocated
Category 1 0%
Category 2 0%
Category 3 0%
Category 4 0%

NCD's Offered by Category

Category ? NCD's Reserved
Category 1 100,000
Category 2 100,000
Category 3 400,000
Category 4 400,000
Total NCD's 1,000,000

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 Cumulative Cumulative
Coupon Rate (% p.a.) Cat I, II 7.15% 7.50% 7.40% 7.75% NA NA
Coupon Rate (% p.a.) Cat III, IV 7.40% 7.75% 7.65% 8.00% NA NA
Effective Yield (% p.a.) Cat I, II 7.15% 7.50% 7.40% 7.75% 7.40% 7.75%
Effective Yield (% p.a.) Cat III, IV 7.40% 7.75% 7.65% 8.00% 7.65% 8.00%
Amount(Rs /NCD) on Maturity - Cat I, II Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,254.11 Rs 1,452.40
Amount(Rs /NCD) on Maturity - Cat III, IV Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,263.41 Rs 1,469.33

NCD Rating

ICRA has assigned "[ICRA]AA" (pronounced ICRA double A) rating with a Stable outlook, assigned to the captioned Non-Convertible Debenture Programme of your company and last communicated to you vide our letter dated September 15, 2020 and September 25, 2020 stands. 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 PP-MLD AAr/Positive' rating to Rs.350 crore Proposed Issuance of Long Term Principal Market Linked Debentures of Muthoot Finance Limited (Muthoot Finance). The ratings on existing debt instruments have been at 'CRISIL AA/CRISIL PP-MLD AAr/Positive/CRISIL A1+'.

Objects of the Issue

The Net Proceeds raised through the Tranche I Issue will be utilised for following activities in the ratio provided as below:

a) For the purpose of lending- minimum of 75% of the amount raised and allotted in the Issue

b) For General Corporate Purposes- shall not exceed 25% of the amount raised and allotted in the Issue

Muthoot Finance NCD Oct 2020 Prospectus

Muthoot Finance NCD Oct 2020 Subscription Status

The Muthoot Finance NCD Oct 2020 was subscribed 31.17 times on Oct 29, 2020 5:00:00 PM. The NCD subscribed .

Category ?Subscription (times)
Category 46.75x
Category 358.62x
Category 2 (NII)27.55x
Category 1 (QIB)22.63x
Total31.17x

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Muthoot Finance NCD Oct 2020 Rating

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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 Oct 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: https://linkintime.co.in/


2 Comments

2. The BuLLz EyE     Link|Nov 6, 2020 11:35:21 AM
Anand,
Please share scrip code
1. Anand C     Link|Oct 27, 2020 10:15:13 PM
Better to buy from secondary market .. NCD of Muthoot trading @12% yield ..
1.1. Anand C     Link|Oct 27, 2020 10:54:09 PM
Better to buy from secondary market .. NCD of Shriram Transport trading @12% yield ..
1.2. LearningIPO     Link|Oct 27, 2020 11:39:46 PM
Please share scrip code for monthly interest payout - muthoot finance. shriram