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Muthoot Finance NCD Offer - Mar 2014 (Avoid)

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Muthoot Finance Ltd. (MFL): A south based leader in gold financing is again coming out with a Secured Redeemable Non-convertible Debentures as well as Unsecured Redeemable Non-convertible Debentures of Rs. 1000 each to mobilize Rs. 200 crore including green shoe option of Rs. 100 crore oversubscription retention. The issue opens for subscription on 10.03.14 and will close on or before 10.04.14. These instruments are rated as 'ICRA/AA- (Stable)' by ICRA indicating indicates high degree of safety regarding timely servicing of financial obligations. Post allotment these NCDs will be listed on BSE. ICICI Securities Ltd is the sole lead manager and Link Intime India Pvt Ltd is the registrar to the offer.ISBI Trusteeship Services Ltd is Debenture Trustee. Funs mobilized from this issue will be used for its finance activities, repaying existing liabilities and investments.

Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD thereon, thereafter. While allotment for these NCDs are available in demat as well as in physical mode, trading will take place only in demat mode. Tenure of this offer ranges from 400 days to 60 months and coupon rate is ranging from 10.25% to 11%. Category II and III (i.e. HNIs and Retail investors) are offered additional incentive of 0.75% on the above rates.


Conclusion / Investment Strategy

A risky offer.

Reviewer recommends Avoid to the issue.

Review By Dilip Davda on Dec 11, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The Muthoot Finance NCD March 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Muthoot Finance NCD March 2014 worth investing. The Muthoot Finance NCD March 2014 Note sets the NCD expectations in systematic way which tells you if Muthoot Finance NCD March 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Muthoot Finance NCD March 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.