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Muthoot Finance NCD Issue Offer - May 2014 (May apply)

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Time and again, this frequent debt issue floater is entering the primary market with its Rs. 250 crore NCD issue with an option to retain 100% oversubscription thus making the overall size of the issue of Rs. 500 crore.

This largest gold loan NBFC from South is once again coming out with an offer of Secured Redeemable Non-Convertible and Unsecured Redeemable Non-Convertible Debenture having a face value of Rs. 1000 each. The Unsecured NCDs will be in the nature of subordinated debt and are eligible as Tier II capital. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiples of 1 NCD thereon, thereafter. Issue opens for subscription on 26.05.14 and will close on or before 26.06.14. This offer carried ICRA AA-/Stable rating indicating a high degree of safety regarding timely servicing of financial obligations. ICICI Securities Ltd is the sole lead manager for this offer and Link Intime India Pvt Ltd is the registrar. IDBI Trusteeship Services Ltd is the Debenture Trustee.

This offer carries coupon rate between 10.25% to 11% and has tenure ranging from 400 days to 60 months. It offers 0.75% extra to category II and III. Post allotment, it will be listed on BSE. The company offers allotment in physical as well as in demat mode, however, the trading will take place in demat mode only.


Conclusion / Investment Strategy

Considering group's fancy in south, investors from those area might respond to the issue, but otherwise, no harm in avoiding it as company is frequently raising debt funds via such offers since last three years and becoming high debt company.

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 May 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 May 2014 worth investing. The Muthoot Finance NCD May 2014 Note sets the NCD expectations in systematic way which tells you if Muthoot Finance NCD May 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Muthoot Finance NCD May 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.